Capri EGM Completes Acquisition of Novelis Global Research & Technology Center

Staff Report From Metro Atlanta CEO

Friday, September 8th, 2017

Capri EGM, an investment company specializing in corporate build-to-suit and sale leaseback financing, and the acquisition of institutional quality single-tenant office, industrial, and retail net lease properties, announced that it has acquired a state-of-the-art mission critical facility for Novelis, the world leader in aluminum rolling and recycling and a part of Aditya Birla Group, a leading $41 billion, Fortune 500 conglomerate.

The Novelis facility is located in the heart of the Atlanta Northwest submarket near I-75 with easy access to globally connected Atlanta International Airport.  The facility serves as the Global Research and Technology Center for Novelis enabling its clients around the world to perform advanced R&D functions for aluminum used for the beverage can industry, rapidly growing auto industry, and other specialty/multi-use product lines.

Significant Facts

  • World leader in rolled aluminum products and recycling: Novelis is the world's premier producer of rolled aluminum and the global leader in aluminum recycling. Novelis collaborates with leading companies in the packaging, automotive, architectural and other high-end specialty products markets to deliver the high-quality, innovative and sustainable aluminum sheet solutions that the marketplace demands.  Novelis is the largest single producer of aluminum flat rolled products for the beverage can and automotive industries globally.  Headquartered in Atlanta, Georgia, USA, Novelis is a $10 billion company with 24 operating facilities in 10 countries. The company is part of the Aditya Birla Group, a $41 billion, Fortune 500 conglomerate based in Mumbai, India.  Novelis enjoys long-standing relationships with some of the world's premier companies and most well-known brands:  AB InBev, AGFA, Audi, Ball, BMW, Can-Pack, Coca-Cola, Crown, Daimler, FCA, Ford, GM, Jaguar, Land Rover, LG, Mercedes Benz, PREFA, and Samsung.

  • Operationally critical global facility: This critical Global Research and Technology Center is a highly efficient and functional state-of the-art facility used by clients around the world to perform advanced R&D functions for aluminum used for the beverage can industry, rapidly growing auto industry, and other specialty/multi-use product lines.  The location was selected for its access to an attractive educated workforce, global connectivity, and proximity to the Novelis Global Headquarters in Atlanta.

  • Long-term net lease with built-in rent growth: The long-term net lease includes contractual annual increases. The property benefits from significant tenant investment, has extensive interior, exterior, and mechanical upgrades, first-class finishes, cutting-edge technology and state-of-the-art infrastructure.

Investment Management Company Comments
Shelby E. L. Pruett, Capri EGM's Co-Chairman and Chief Executive Officer, commented: "This transaction illustrates Capri EGM's focus on identifying and owning high quality, operationally critical assets leased by leading global companies on a long-term basis in strategic markets within the United States. 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 is 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 lease and the financial strength of Novelis and Aditya Birla Group, we believe that this acquisition will be an attractive and solid addition to the Capri EGM portfolio."