Capri EGM Enters Into Build-to-Suit Announces Acquisition of Distribution Facility for North American Subsidiary of Philips

CHICAGO IL – July 20, 2016 /PRNewswire/ — Capri EGM, an investment company specializing in corporate sale leaseback and build-to-suit financing, and the acquisition of institutional quality single-tenant office, industrial, and retail net lease properties, announced today that it has entered into an agreement to provide build-to-suit financing and acquire a build-to-suit distribution facility for the North American subsidiary of Dutch company Koninklijke Philips N.V., a publicly traded, $24.8 billion global technology company with primary divisions focused in the areas of electronics, healthcare and lighting. The company’s Philips Respironics business unit will operate in the new build-to-suit facility under a long-term net lease. The purchase price for the property was not disclosed.

The Philips distribution facility is located southeast of Pittsburgh in an industrial park within Westmoreland County, PA in close proximity to Philips manufacturing facility and 32-acre main campus. 

Significant Facts

  • Industry-leading healthcare, electronics, and lighting technology company: Philips Respironics, is a business unit of the North American subsidiary of Dutch company Koninklijke Philips N.V. (S&P: A-), a publicly traded, $24.8 billion global technology company with primary divisions focused in the areas of electronics, healthcare and lighting. As a global leader in the sleep and respiratory markets, Philips offers innovation in sleep apnea management, oxygen therapy, noninvasive ventilation, and respiratory drug delivery.
  • Well-designed highly functional facility: The new build-to-suit consolidates the operations of five existing area locations into one highly functional and efficient facility. The build-to-suit represents best-in-class design for its use and is designed to meet the efficiency and flexibility standards of today’s corporate users. 
  • Long-term net leases with built-in rent growth: The long-term net lease includes contractual annual increases and provides for future expansion. The build-to-suit site was selected by Philips and is strategically located to connect and serve the Philadelphia, Pittsburgh, Columbus, and Indianapolis markets.

Investment Management Company Comments
Shelby E. L. Pruett, Capri EGM’s Co-Chairman and Chief Executive Officer, commented: “This build-to-suit structure and acquisition of the Philips Distribution Facility highlights how Capri EGM’s ability to work with developers early in a process to structure a solution that works for all parties makes us an attractive alternative source of long-term capital for developers and creditworthy growing companies. By unlocking value through creative structuring and capital efficiency, we are committed to building long-term value for our institutional and corporate partners. The acquisition and build-to-suit afford Capri EGM the opportunity to invest in assets that are consistent with our established strategy, providing durable cash flows, escalating annual rents, and attractive risk‑adjusted returns over time and across a variety of market conditions and economic cycles. Coupled with the long-term leases and the financial strength of Philips, we believe that this build-to-suit and acquisition will be an attractive and a solid addition to the Capri EGM portfolio.”


Capri EGM
Capri EGM is a real estate investment manager focused on the net lease, sale-leaseback, and build-to-suit commercial markets, providing investment programs for institutional investors and capital solutions for corporations. A venture with Capri Investment Group, Capri EGM is headquartered in Chicago, Illinois. Since 1992, Capri and its predecessor organizations have acquired, originated, and managed over $10 billion in commercial real estate investments directly and through entity level investments. Diversified assets managed on behalf of Capri’s pension fund and other institutional investors totaled approximately $3.53 billion as of December 31, 2015. Please visit for more information about Capri EGM.

This press release contains forward-looking statements within the meaning of the Federal securities laws. The comments of Mr. Pruett and statements regarding the acquisition of the Philips distribution facility, build-to-suit, or the characteristics of the property are examples of forward looking statements. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security relating to Capri EGM or any of its entities’ funds or investment vehicles. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum. 

Capri EGM Media Contacts:
Trish Hoffman 312-805-4314
Jeff Fisher 312-805-4850