SINGAPORE - Global Logistic Properties will be co-investing with Singapore sovereign wealth fund GIC to acquire one of the largest logistics real estate portfolios in the US for US$8.1 billion, confirming earlier speculation that it would be involved in the deal.
GIC had announced last week that it and other partners were set to buy over warehouse owner IndCor from private equity giant Blackstone.
The transaction provides GLP with immediate scale in the US, the world's largest economy and logistics market, as well as an experienced local management team that further strengthens GLP's team.
The transaction is expected to be completed in the first quarter of 2015 and GLP will initially hold a 55 per cent stake in the fund, while GIC will hold the remaining 45 per cent.
GLP will eventually pare this stake down to 10 per cent after it brings in additional partners. The eventual stake of 10 per cent represents about US$330 million of equity or 4 per cent of GLP's net asset value.
GLP noted that the US industrial real estate market has been experiencing solid growth recently.
Lack of construction over the past five years has led to limited new supply of 0.4 per cent of total stock per year. There is stable demand for logistics infrastructure driven by continued growth in retail and e-commerce sales which are growing faster than GDP. IndCor's centres are in markets near domestic and global transportation hubs, and major logistics and warehouse and distribution networks in cities such as Las Vegas, Seattle, Denver, Houston and Miami.