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Singapore’s sovereign fund GIC and Singapore-listed Global Logistic Properties have completed their acquisition of Chicago-based industrial landlord IndCor Properties from Blackstone for US$8.1 billion (S$11 billion).
GLP currently holds a 55 percent stake in the company, but it plans to reduce it to about 10 percent by August 2015, while GIC has a 45 percent stake.
The former will also manage and rebrand IndCor Properties, which owns 117 million square feet of high-quality logistics facilities. Aside from a diverse customer base, these properties are mainly concentrated in US key markets with a population of at least 1 million. As such, these facilities are ideal for last mile e-commerce deliveries.
As of end-January, 91 percent of these properties are leased, and GLP is focusing on renting out the remaining unoccupied premises in the near-term.
“This transaction establishes immediate scale in the US, as well as a strong platform for future growth,” said GLP’s Chief Executive Officer Ming Z. Mei.
The transaction is in accordance with the company’s growth strategy to expand into the world’s most lucrative logistics markets and secure US$20.4 billion (S$27.68 billion) worth of assets under management (AUM) from US$19 billion (S$25.78 billion) as of 31 December 2014.
“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,” Ming added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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