GLP co-invests with GIC to acquire US$8.1 billion US logistics portfolio, IndCor

08-Dec-14

8 December 2014

Singapore, 8 December 2014 – Global Logistic Properties Limited (“GLP”), the leading provider of modern logistics facilities in China, Japan and Brazil, is co-investing with GIC, Singapore’s sovereign wealth fund, to acquire IndCor Properties (IndCor), one of the largest industrial platforms in the US for US$8.1 billion. The sellers are funds affiliated with Blackstone Real Estate Partners VI & VII. The platform comprises approximately 117 million square feet of high-quality industrial properties in key markets throughout the United States.

The transaction is expected to be completed in the first quarter of 2015. GLP will initially hold a 55% stake, and GIC the remaining 45%. GLP will have like-minded capital partners participate alongside and subsequently reduce its stake to 10% by August 2015 as part of its strategy to expand its fund management platform.

Tia Miyamoto, Regional Head, Americas, GIC Real Estate, said: “We are acquiring IndCor because it is one of the largest industrial platforms in the US and it is at an attractive point in the recovering US industrial market cycle. As a long-term investor, we believe this investment will achieve stable income growth and will allow us to add value over the long run. We are pleased to partner with GLP, a market leader in the logistics sector.”

Ming Mei, Co-Founder and Chief Executive Officer of GLP, said: “This transaction gives us immediate scale as well as the best team in the US logistics market. The local management team is very experienced and we expect significant synergies given that we have worked with and alongside more than half of them previously. Investor interest for this vehicle is strong and we remain confident of completing the fund syndication by August 2015.

“While we are very excited to broaden GLP’s market exposure and selectively expand our footprint into the best logistics markets internationally, China remains our key growth market. GLP will continue to focus on executing our expansion plans in China, Japan and Brazil, while also growing our fund management platform.”

The US industrial real estate market has been experiencing solid growth recently, with the last 18 consecutive quarters yielding positive net absorption. Lack of construction over the past five years has led to limited new supply of 0.4% of total stock per year. There is stable demand for logistics infrastructure driven by continued growth in retail and e-commerce sales which are growing faster than GDP.