Warburg Pincus and Lendlease buy Singapore industrial assets for $1.6 billion

SINGAPORE - Lendlease and US private equity giant Warburg Pincus have acquired a $1.6 billion portfolio of assets in Singapore from entities related to Blackstone and Mr Lim Chap Huat, Soilbuild’s executive chairman.

The assets, spanning a total gross floor area of 4.5 million sq ft, belonged to the Soilbuild Business Space Reit, which was privatised by Blackstone and Mr Lim in 2021.

They comprise business parks and high-tech industrial facilities tenanted to blue-chip companies across the life sciences, technology, advanced manufacturing and logistics sectors, the acquiring parties said on Aug 27.

The deal is one of the largest transactions involving a private portfolio of industrial assets in Singapore, Lendlease and Warburg Pincus said.

Mr Justin Gabbani, chief executive officer of investment management at Lendlease, said: “This strategic acquisition underscores our commitment to the rapidly expanding life sciences and R&D real estate market in Asia-Pacific. The platform is well-positioned to capture opportunities in the sector. We look forward to building momentum and further scaling the business, as well as driving performance for our investment partners.”

The acquisition marks the first transaction for the joint venture platform between Lendlease and Warburg Pincus since it was launched on July 31. The platform focuses on life sciences, and research and development real estate in the Asia-Pacific.

Mr Takashi Murata, managing director and co-head of Asia real estate and head of Japan at Warburg Pincus, said: “The portfolio gives us immediate scale in the tightly held Singapore market, cementing our position as one of the top industrial asset owners in Singapore and reiterating our conviction in the life sciences and R&D sector.”

Blackstone Real Estate said on Aug 27 that following the sale, it will continue its partnership with Soilbuild Group through investments in the other assets in the Soilbuild Business Space Reit.

Soilbuild Business Space Reit was privatised in 2021 after Soilbuild faced difficulties in growing its portfolio, while balancing that with its ability to undertake distribution per unit-accretive acquisitions.

The deal involved Mr Lim teaming up with Blackstone Real Estate to acquire the holdings of minority investors at a price of 55 cents per unit, which was close to Soilbuild Business Space Reit’s book value.