Case Studies.DHL Exel Distribution Warehouse.

GRT’s creative sale-leaseback deal structuring provided growth capital for a leading direct marketing company.

DHL Exel – Groveport, OH

Product

Class A Warehouse

Purchase Date

June 2015

Transaction Size

312,000
  • Challenge:
    • In 2014, GRT established a relationship with DHL Exel to explore the various ways GRT could serve as a capital provider for DHL Exel’s current and future real estate needs. DHL Exel was awarded a new contract to serve Guthy-Renker as part of a consolidation and reconfiguration of Guthy-Renker’s real estate distribution footprint.
    • DHL Exel and Guthy-Renker sought to build a new warehouse in the Columbus market to better serve the U.S. population from a central location. The companies identified various development sites in communities offering 15-year real property tax abatements and began a search for capital partners to structure the transaction.
  • Resolution:
    • GRT worked with DHL Exel to structure the transaction as a sale-leaseback with a forward-commitment. Exel agreed to construct the facility, and GRT committed to acquire the property upon substantial completion subject to Exel leasing the property for 7 years.
    • The transaction was structured with Exel Inc. as the tenant on the lease given DHL Exel’s superior credit profile relative to Guthy-Renker, which in turn provided better pricing for Exel and Guthy-Renker.
    • GRT acquired the property via sale-leaseback in June 2015 for $15.9 million
  • Benefits:
    • GRT was able to acquire a new, state-of-the-art distribution warehouse, and the sale-leaseback provided Exel and Guthy-Renker with capital to reinvest in their core businesses.