GLP buys IndCor Properties for $8.1bn
March 3, 2015
Singapore-basedGlobal Logistic Properties has completed the acquisition of one of the largest logistics platforms in the USA for US$8.1bn. GLP holds a 55% stake in the portfolio initially and expects to reduce its stake to approximately 10% by August 2015. The platform formerly known as IndCor Properties, a portfolio company wholly owned by Blackstone, will be rebranded to and managed by GLP.
The portfolio comprises 11 million square meters of 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, suitable for last mile e-commerce deliveries. The portfolio is 91% leased and GLP is focused on increasing the lease ratio in the near-term.
“This transaction establishes immediate scale in the USA, as well as a strong platform for future growth,” said Ming Z Mei, chief executive officer of GLP. “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 strong existing US team which joins GLP further strengthens our team.”
The fund syndication is currently oversubscribed, with several investors in advanced stages of due diligence. GLP remains confident of completing the fund syndication by August 2015, which will bring its stake down from 55% to approximately 10%. GIC holds 45%.
GLP will manage the portfolio acquired from various real estate funds affiliated with the Blackstone Group. This transaction is in line with GLP’s growth strategy of expanding into the best logistics markets internationally via its fund management platform and brings the company’s assets under fund management to US$20.4bn.