SINGAPORE - Mainboard-listed Global Logistic Properties said on Friday that it has completed the acquisition of one of the largest logistics platforms in the United States for US$8.1 billion (S$10.99 billion).
GLP holds an initial 55 per cent stake in the portfolio and expects to reduce its stake to approximately 10 per cent by August 2015. Singapore sovereign wealth fund GIC holds the remaining 45 per cent interest.
The fund syndication is currently oversubscribed, with several investors in advanced stages of due diligence, said GLP.
The platform formerly known as IndCor Properties, a portfolio company wholly owned by Blackstone, will be rebranded and managed by GLP.
GLP said the portfolio comprises 11 million square meters of high quality logistics properties with a diverse customer base. It is concentrated in locations with higher barriers to entry, with 26 of 29 key markets with populations of one million or greater, ideal for last mile e-commerce deliveries, it added.
As of January 31, 2015, the portfolio is 91 per cent leased and GLP said it is focused on increasing the lease ratio in the near-term.
Said Ming Z. Mei, GLP CEO: "This transaction establishes immediate scale in the US, as well as a strong platform for future growth. It is consistent with our strategy to operate in the best markets globally and to grow our fund management platform.
"Given the quality and the strong market fundamentals, we are confident that we can increase the lease ratio and capture positive leasing spreads in the near future."
The acquisition brings GLP's assets under fund management to US$20.4 billion.