Two Firms Lead Carlyle’s Buy of iStar’s Net Lease Business

Kirkland & Ellis is advising Carlyle Group Inc.’s global credit unit on its agreement to acquire the net lease business of iStar Inc. for an enterprise value of around $3 billion, the law firm said.

Paul Weiss is advising iStar on the transaction, which is expected to close later in the first quarter, according to a statement.

Through the transaction, Carlyle acquires a portfolio of iStar’s triple-net leases, in which tenants agree to pay property taxes, insurance fees and maintenance costs for properties. The portfolio includes industrial, office and entertainment properties in the U.S., the statement said.

“Acquiring iStar’s net lease business jump starts our real estate credit strategy, quickly giving us scale to accelerate deployment,” said Mark Jenkins, Carlyle’s head of global credit. “We expect to grow this net lease strategy into a $10 billion business with a focus on making the product available to the retail channel over time.”