New Mountain Net Lease Trust has agreed to buy the entire portfolio of New Mountain Net Lease Partners II, an affiliated private fund, for about $2.4bn, according to an 8-K filing describing a purchase agreement signed on 15 October.
Why New Mountain Net Lease Trust is buying New Mountain Net Lease Partners II portfolio (180 industrial net-lease properties)
The portfolio comprises more than 18 million square feet across 180 operationally critical, single-tenant industrial properties let to 39 tenants, with a weighted average remaining lease term of about 15 years and average annual rent escalators of 2.6%. AltsWire noted that the REIT owned 174 properties let to 37 tenants at 30 June 2026, so the purchase would more than double its size.
Deal terms and financing
The gross price of about $2.4bn excludes closing costs and is payable in cash, assumed debt and certain classes of the REIT's common shares, which investors in the seller fund may elect to receive instead of cash. The REIT plans to fund the deal from cash on hand, mainly raised in its continuing private offering, the assumption of about $1.3bn of existing mortgage debt, new borrowings and shares issued to rolling investors. It must place about $24m, or 1% of the price, in escrow by 22 October.
Regulatory approvals and timing
The REIT's board, including all independent trustees, approved the deal subject to a fairness opinion from Jones Lang LaSalle Securities. The buyer may terminate for any reason until the due diligence period expires on 29 November, and closing, expected on or about 1 January 2027, depends on customary conditions, financing and lender consents for the assumed debt.
Market context
The seller is managed by an affiliate of New Mountain Finance Advisers, the REIT's external adviser and a subsidiary of New Mountain Capital. The fund closed in June 2023 with $825m of equity commitments and in September 2025 bought a 53-asset net-lease portfolio for $640m. AltsWire reported that the REIT had a net asset value of $814.9m at mid-year.
