Singapore (Reuters) - Singapore sovereign wealth fund GIC Pte has agreed to buy IndCor Properties Inc. from US private equity giant Blackstone Group for US$8.1 billion (S$10.58 billion) in one of the largest sales of industrial property ever.
The purchase is expected to close in the first quarter, Blackstone said in a statement on Tuesday, while GIC confirmed its the investment in IndCor later the same day.
As a result of the deal, IndCor will no longer be pursuing an initial public offering, Blackstone added.
Chicago-based IndCor was formed in 2010 as a portfolio company of Blackstone and owns about 117 million square feet (10.9 million square meters) of warehouses and distribution centers across the United States.
GIC has stepped up its real-estate purchases in recent months, buying office buildings in Tokyo and investing in Australian student accommodation as a way to diversify its portfolio and secure better yields.
For Blackstone, the deal allows it to exit a major investment at a profit as it invests in a new series of property funds, Bloomberg News said.
"We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States," Tim Beaudin, chief executive officer of IndCor, said in the statement. "We are excited about the company's future prospects under new long-term ownership with GIC."
GIC is estimated by the Sovereign Wealth Fund Institute to manage around US$320 billion in assets. Real estate accounted for 7 per cent of its portfolio in the financial year to April 1, according to its annual report.
Eastdil Secured, a unit of Wells Fargo & Co, Citigroup, Barclays and RBC Capital Markets acted as advisers to Blackstone.