Greetings and welcome to Great Elm Real Estate Ventures. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Adam Yates, Managing Director. Thank you, sir. You may.
Good morning, everyone. Thank you for joining us for our Great Elm Real Estate Ventures conference call. As a reminder, this conference call is being recorded on Friday, August 1st, 2025. If you would like to be added to our distribution list, you can email GEG Investor Relations at greatelmcap.com, or you can sign up for alerts directly on our website, www.greatelmgroup.com. The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentation. A link to the webcast is also available on our website, as well as in the press release that was disseminated for this announcement. Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group.
does not undertake to update its forward-looking statements unless required by law. To obtain copies of our SEC filings, please visit Great Elm Group website under Financial Information and select SEC Filings. Today's call includes financial information that is preliminary, has not been audited or reviewed by an independent registered public accounting firm, and is subject to change. Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm Group or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle. On the call today, we have Jason Reese, CEO, Adam Kleinman, President and General Counsel, Nicole Milks, COO, and Keri Davis, CFO. I will now turn the call over to Jason Reese, CEO.
Good morning, everyone, and thank you for joining us today. We appreciate your continued support and interest in Great Elm Group . When Great Elm added the management of Monterey Properties REIT to its platform, we started with the simple but powerful idea that industrial outdoor storage was an underserved asset class ripe for innovation. As we executed on the REIT strategy, we realized that the opportunity in the ILS space was much larger than pure-play real estate asset management. Over the past few years, the team has thoughtfully and deliberately expanded the real estate business. First, we created Monterey BTS, our built-to-suit development arm. Earlier this year, we launched Monterey Construction Services, adding in-house construction and pre-development capabilities to complete the vision of an integrated ecosystem.
We built a comprehensive real estate business capable of delivering value at every step of the real estate lifecycle for Monterey's tenants and investors and GEG shareholders. Our ability to create value for all three constituencies is centered on our creation of a full-service, integrated enterprise that has scale and expertise to lead in the ILS space. Today, we are operating at a new level. We've built the real estate business with structural advantages, recurring revenue streams, and the scalability to grow. The most exciting part is we're just getting started. We have laid the foundation, and with the addition of Kennedy Lewis Investment Management as a strategic partner, I believe we have the team and infrastructure in place to drive significant value creation over the coming years. Now, let me dive into the transaction and what we believe Kennedy Lewis brings to the table.
Yesterday, GEG . entered a strategic partnership with Kennedy Lewis Investment Management, an institutional alternative investment management firm managing over $30 billion in assets under management. As part of this partnership, Kennedy Lewis acquired 4.9% of GEG common stock at a market price of approximately $2.11 per share and will invest up to $150 million in Monterey Properties REIT to accelerate the expansion of our real estate platform under the Monterey brand. In addition to these investments, Kennedy Lewis will appoint representatives to the boards of both Great Elm and Monterey REIT. This long-term commitment reflects their deep alignment with our strategy and their confidence in our trajectory.
The structure of this transaction includes a $100 million term loan to Monterey Properties REIT, with an option for an additional $50 million in the future, a 15% profits interest with the potential to increase to 20% in our newly formed Great Elm Real Estate Ventures subsidiary, which now houses Monterey CRE, our investment manager, Monterey BTS, our developer, and Monterey Construction Services, our construction manager, and, as mentioned, a strategic equity investment in GEG itself. This transaction not only lowers the REIT's cost of capital but also allows us to refinance existing debt, expand acquisition efforts, and scale our end-to-end service offerings across asset management, development, and construction. Let me take a moment to highlight why this is so meaningful. As part of this partnership, Kennedy Lewis is making an investment in Great Elm Group , directly aligning themselves with the success of our parent company.
Their commitment is a powerful endorsement of our long-term strategy and a shared belief in the value we are creating for GEG shareholders. Monterey REIT has grown to approximately $400 million in assets before the Kennedy Lewis capital investment, spanning approximately 150 properties across 29 states and servicing 49 unique tenants, many in mission-critical industries like equipment rental, energy, and logistics. We launched Monterey Construction Services earlier this year and completed our first design-build project last year through Monterey BTS, adding meaningful value to our platform. With the infrastructure and team now in place, this infusion of capital and partnership with Kennedy Lewis allows us to scale without delay, bringing forward the necessary resources needed to kickstart our growth trajectory and value creation. Kennedy Lewis's involvement goes far beyond a capital injection. It brings a seasoned partner with a proven playbook for scaling and monetizing high-potential real estate platforms.
Their success with the launch and IPO of Millrose Properties, a $5 billion REIT spun out from Lennar Corporation, serves as a powerful example of their ability to transform institutional platforms into market-leading public companies. To expand on that point, Millrose is a compelling example of what Kennedy Lewis brings to Great Elm and Monterey. The Millrose story demonstrates Kennedy Lewis's ability to execute large-scale real estate spin-offs, craft innovative, capital-efficient platforms, and successfully launch a REIT at scale. Their demonstrated ability to identify, scale, and monetize high-potential platforms gives us strong confidence in what we can build together at Great Elm. Our timing for this transaction could not be better. We are entering this chapter with strong momentum and a favorable macroeconomic backdrop. Factors like reshoring of manufacturing, increasing tariffs, AI-driven data infrastructure, and energy transition initiatives are fueling domestic demand for industrial real estate.
We believe our platform is ideally positioned to capture this opportunity. With the backing of Kennedy Lewis, we are supercharging our long-term goal to grow our real estate assets to $1 billion and revenue to $100 million by the year 2030, with a path toward a potential IPO of Monterey REIT on the horizon. To get there, we are targeting growth in revenue of the Monterey platform companies from approximately $5 million in fiscal 2025 to $20 million in fiscal 2026 and $100 million by fiscal 2030. We believe that this growth trajectory not only positions Monterey REIT to pursue a public listing but also unlocks meaningful enterprise value across GEG's broader portfolio. With Kennedy Lewis as our partner, we are laying the foundation for a scalable, integrated, and high-performing real estate enterprise capable of delivering durable, compounding returns for years to come.
This is a defining moment in Great Elm's evolution. The launch of Great Elm Real Estate Ventures, supported by Kennedy Lewis's capital and expertise and their direct investment in Great Elm Group, positions us to deliver exceptional outcomes for our tenants, investors, partners, and most importantly, for you, our shareholders. Thank you again for your support. We're energized by what's ahead and look forward to sharing our continued progress in the quarters to come. Now I'll open the floor to questions.
Thank you. We will now conduct a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. For participants using speaker equipment, it may be necessary to pick up your headset before pressing the star keys. Once again, that's star one to ask a question at this time. One moment while we pull for questions. Once again, ladies and gentlemen, to ask a question at this time, that's star one on your telephone keypad. I would like to turn the call back to Mr. Jason Reese for closing comments.
Thank you again for joining us today. As I said, we're very excited about the future, and we look forward to speaking with you.
Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.