The current tenant of the Property, Skorpios Technologies Inc. (the "Tenant"), is engaged in both the contract fabrication and next-generation fabrication of semiconductors. The Tenant also develops proprietary technology in its own vertically integrated fabrication facility. The Tenant's lease has a 15-year initial duration, with extension options, and the Property is fundamental to the Tenant's business as it houses its manufacturing and production. NexPoint believes that these factors, along with strong industry tailwinds, high quality construction, and strategic location, make the Property an attractive long-term investment.
"The Trust provides a long-term investment opportunity in an increasingly in-demand industry" said Matt McGraner, Chief Investment Officer at NexPoint. "With applications in emerging technologies like artificial intelligence and a strong commitment by the U.S. to grow the semiconductor industry domestically, we believe the semiconductor manufacturing sector is primed for success."
Semiconductors are a key component of the U.S. economy. The semiconductor space is in the early stages of a new wave of growth, driven in part by the CHIPS and Science Act of 2022, which Congress passed with bipartisan support. The CHIPS and Science Act of 2022 provides incentives and investment for research to ensure the U.S. stays at the forefront of innovation. According to the Semiconductor Industry Association's 2023 report, the CHIPS and Science Act of 2022 should create over 200,000 jobs and result in over $180 billion in company investments in the U.S.
The Property is located in Temecula, California, part of the Riverside, California metropolitan statistical area (the "Riverside MSA"), which has added over 450,000 jobs since 2013 and is expected to see continued job growth.1 The Riverside MSA also experienced GDP growth of 6.2% in 2021.2
NexPoint has brought $2.2 billion worth of real estate to the DST market. NexPoint has also invested over $1.2 billion of its own capital in various investment offerings that it advised or sponsored.
About NexPoint
NexPoint is a multibillion-dollar alternative investment firm comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. NexPoint provides differentiated access to alternatives through a range of investment solutions, including public and private real estate investment trusts, tax-advantaged real estate vehicles, merger arbitrage and event driven strategies, other private real estate investments, closed-end funds, interval funds, and a business development company. NexPoint is based in Dallas, Texas and is part of a network of affiliates with expertise across the asset management and financial services spaces. For more information visit nexpoint.com.
Important Disclosures
Only "accredited investors" (as that term is defined in Rule 501 promulgated under the Securities Act of 1933) who meet certain minimum requirements may invest. Investing in the Trust involves a high degree of risk. Past performance does not guarantee future results. Before investing, please review the applicable offering materials, including the Trust's Private Placement Memorandum as amended or supplemented from time to time, including the "Risk Factors" noted therein.
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| 1 JLL Valuation and Advisory Services LLC
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https://www.prnewswire.com/news-releases/nexpoint-launches-nexpoint-semiconductor-manufacturing-dst-offering-301962040.html
SOURCE NexPoint
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