Global Logistic Properties Limited (GLP) has announced that it is co-investing with GIC, Singapore’s sovereign wealth fund, to acquire real estate portfolios in the US for US$8.1bn. The purchase made by the two entities’ joint venture, GLP US Income Partners I, will provide immediate scale in the US, adding 11m sq m of total gross floor area spread across 36 sub-markets in the US.
The transaction is expected to be completed in the first quarter of 2015 and GLP will initially hold a 55% stake in GLP US Income Partners I and GIC the remaining 45%. GLP intends to reduce its stake to 10% by August 2015 as part of expanding its fund management platform and has already received strong interest from capital partners looking to invest in the US logistics market. GLP’s initial equity commitment will be funded by cash on hand and a short-term credit facility. The company’s final 10% stake represents US$330m of equity, or 4% of GLP’s net asset value.
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 GLP US Income Partners I 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,” he added.
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