Global Logistic Properties (GLP) announced that it has completed the acquisition of a logistics platform in the US for $8.1bn. GLP holds a 55% stake in the portfolio initially and expects to reduce its stake to approximately 10% by August 2015 through a syndication. The platform formerly known as IndCor Properties, a portfolio company wholly owned by the private equity firm Blackstone, will be rebranded to and managed by GLP.
The portfolio comprises 117m sq ft of high quality logistics properties with a diverse customer base. The portfolio is concentrated in locations with higher barriers to entry, with 26 of 29 key markets with populations of 1m or greater, ideal for last mile e-commerce deliveries. As of 31 January 2015, the portfolio is 91% leased and GLP is focused on increasing the lease ratio in the near-term.
Ming Mei, Chief Executive Officer of GLP said, “This transaction establishes immediate scale in the US, as well as a strong platform for future growth. 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 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%. Singapore’s sovereign wealth fund GIC holds the other 45% stake.
GLP will manage the portfolio acquired from various real estate funds affiliated with The Blackstone Group. This transaction brings the company’s assets under fund management to US$20.4bn.
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