Warren Buffett's Berkshire Hathaway is investing more money in the real estate business.
Store Capital announced on Monday that Berkshire invested $377 million in the company, which represents a 9.8 percent stake in the real estate investment trust.
The company issued 18.6 million shares of Store Capital shares in a private placement to a subsidiary of Berkshire Hathaway, National Indemnity Co., at $20.25 per share.
"Berkshire Hathaway's investment solidly positions STORE for continued growth, while adding measurably to our already strong financial position," Store Capital CEO Christopher Volk said in a statement. "An investment in our company from one of history's most admired investors represents a vote of confidence in our experienced leadership team and an affirmation of our profit-center real estate investment and management approach."
Berkshire Hathaway's investment makes the company the third largest holder in Store Capital, after Vanguard Group and Fidelity Management & Research, according to FactSet.
Store Capital has investments in over 1,750 properties in 48 states, according to the company. AMC Entertainment, Applebee's and Ashley Furniture are among its 10 biggest customers, according to an investor presentation.
Store describes itself as the leader in "Single Tenant Operational Real Estate" and says it is "dedicated to real estate net-lease profit-center property investments."
Berkshire Hathaway and Store Capital did not immediately respond to requests for comment.
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