Safehold Enters into Joint Venture with Sovereign Wealth Fund

Rhea-AI Summary

Safehold Inc. (NYSE: SAFE) announced on April 5, 2023, a joint venture with a sovereign wealth fund to expand its ground lease investments. Safehold is investing approximately $275 million for a 55% stake, while the sovereign wealth fund will contribute about $225 million for a 45% stake. This partnership is aimed at navigating the current volatile market environment and providing accretive capital for customer service. Safehold, a REIT, focuses on unlocking land value for property owners and aims to deliver safe income and capital appreciation to its shareholders.

Positive

• Joint venture with sovereign wealth fund may enhance acquisition capabilities.
• Investment of $275 million shows commitment to growth.
• Partnership aims to provide accretive capital, potentially benefiting future revenues.

Negative

• None.

News Market Reaction – SAFE

-3.53%

-3.53% News Effect

On the day this news was published, SAFE declined 3.53%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, April 5, 2023 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) announced today that it has entered into a joint venture arrangement with a sovereign wealth fund focused on new acquisitions for certain ground lease investments. Safehold committed approximately $275 million for a 55% interest in the joint venture, and a sovereign wealth fund committed approximately $225 million for a 45% interest in the joint venture.

"As we navigate the rapidly changing market environment and volatile capital markets, this partnership provides Safehold with accretive capital to help serve our customers," said Marcos Alvarado, President and Chief Investment Officer.

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

Company Contact: 

Pearse Hoffmann
Senior Vice President
Capital Markets & Investor Relations
T 212.930.9400
E investors@safeholdinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-enters-into-joint-venture-with-sovereign-wealth-fund-301790220.html

SOURCE Safehold

FAQ

What is Safehold's recent investment announcement?

Safehold Inc. announced a joint venture with a sovereign wealth fund, committing approximately $275 million for a 55% interest.

How much is the sovereign wealth fund investing in the Safehold joint venture?

The sovereign wealth fund is investing approximately $225 million for a 45% interest in the joint venture with Safehold.

What does the joint venture mean for Safehold's future?

The joint venture is expected to enhance Safehold's acquisition capabilities and provide capital to support customer services amidst market volatility.

What is the purpose of the joint venture for Safehold?

The joint venture aims to leverage accretive capital for new acquisitions in ground lease investments.

What is the stock symbol for Safehold?

The stock symbol for Safehold is SAFE.