Global Logistic Properties Limited said Friday it completed its buy of IndCor Properties for $8.1 billion. GLP said it holds a 55 percent stake initially and expects to reduce it to about 10% by August. The portfolio comprises 117 million square feet (11 million square meters) of high quality logistics properties with a diverse customer base. The platform is formerly known as IndCor Properties, a portfolio company wholly owned by Blackstone, and will be rebranded to and managed by GLP.
Singapore, 27 February 2015 – Global Logistic Properties Limited (“GLP”), the leading global provider of modern logistics facilities, has completed the acquisition of one of the largest logistics platforms in the United States for US$8.1 billion. 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 117 million square feet (11 million square meters) 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 one million 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.
Mr. Ming Z. 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 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 L.P. 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$20.4 billion.
Domestic consumption is a key driver of demand for GLP. The Group is listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP).