OREANDA-NEWS. Landmark Infrastructure Partners LP today announced that it has acquired 59 tenant sites located in 21 states from its sponsor, Landmark Dividend LLC (“Landmark”), for total consideration of $24.4 million.  This acquisition is expected to be immediately accretive to the Partnership’s distributable cash flow.

The Chief Executive Officer of the Partnership’s general partner, Tim Brazy, said, “We are excited to announce our latest drop-down acquisition from our Sponsor.  Since our initial public offering in November 2014, we have acquired over 820 tenant sites for total consideration of nearly $300 million, more than doubling the size of the Partnership and positioning it well for ongoing growth in 2016.”

 Highlights of the transaction:

  • The assets acquired by the Partnership consist of 37 wireless communication, 4 outdoor advertising and 18 renewable power generation sites;
     
  • The wireless communication, outdoor advertising and renewable power generation assets are expected to contribute approximately 53%, 2% and 45%, respectively, of the total forecasted annual rents;
     
  • The portfolio is 100% occupied and includes: (i) 93% of annual rents from Tier 1 tenants (large, publicly-traded companies with national footprints); (ii) an average annual escalator of 2.1%; and (iii) average remaining real property interest and lease terms of 69 years and 27 years (including remaining renewal options), respectively;
     
  • The assets being acquired are not part of the assets subject to the Partnership’s right of first offer (ROFO) with affiliates of Landmark.  As of June 30, 2016, assets under management with affiliates of Landmark totaled more than 930 assets, including greater than 820 assets that are subject to our ROFO;
     
  • The Partnership is acquiring the assets with borrowings under its existing revolving credit facility and available cash.

The terms of the acquisition were approved by the Board of Directors of the General Partner of the Partnership, based on the approval and recommendation of the Conflicts Committee, which is comprised entirely of independent directors.  The Conflicts Committee was advised by Duff & Phelps Corporation, its financial advisor, and Akin Gump Straus Hauer & Feld LLP, its legal counsel.

The Partnership is a growth-oriented master limited partnership formed to acquire, own and manage a portfolio of real property interests that the Partnership leases to companies in the wireless communication, outdoor advertising and renewable power generation industries.  Headquartered in El Segundo, California, the Partnership owns and manages a diversified portfolio of real property interests, which includes long-term and perpetual easements, tenant lease assignments and, to a lesser extent, fee simple properties, located in 49 states, the District of Columbia and Australia. As of June 30, 2016, the Partnership’s portfolio consisted of 1,450 tenant sites.