Global Logistic Properties Ltd. (GLP), a logistics company with facilities in China, Japan and Brazil, is co-investing with GIC, Singapore’s sovereign wealth fund, to acquire IndCor Properties one of the largest logistics real estate portfolios in the U.S. for $8.1 billion.
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 U.S. logistics market.
“We are acquiring IndCor because it is one of the largest industrial platforms in the U.S. and it is at an attractive point in the recovering U.S. industrial market cycle,” says Tia Miyamoto, regional head, Americas, GIC Real Estate.
The U.S. 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.
“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," says Ming Z. Mei, Co-Founder and CEO of GLP. "GLP will continue to focus on executing our expansion plans in China, Japan and Brazil, while also growing our fund management platform.”