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GLP partners GIC to buy US$8.1b logistics portfolio in US
GLOBAL Logistics Properties Limited (GLP) is teaming up with Singapore investment firm GIC to buy a US$8.1 billion logistics portfolio in the US, which it said would give it "immediate" scale in the world's largest logistics market.
The portfolio, comprising 117 million square feet in total gross floor area, is spread across 36 major sub-markets in the US. Currently owned by various portfolio companies affiliated to private equity firm Blackstone Group, it was 90 per cent leased as at Sept 30, with a weighted average lease expiry of 3.2 years.
GLP will first take an initial interest of 55 per cent in the joint venture, though this will be reduced to 10 per cent by August next year as part of an expansion to its fund management platform. The latter represents US$330 million in equity, or 4 per cent of its net asset value. GIC will have a stake of 45 per cent. GLP will fund its commitment by cash and a short-term credit facility.
"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," said CEO of GLP Ming Z Mei, adding that investor interest in the portfolio is strong, giving the firm confidence in completing the fund syndication by August 2015.
While GLP is expanding into other international markets, China remains its key growth market, he said. "GLP will continue to focus on executing our expansion plans in China, Japan and Brazil, while also growing our fund management platform."
The transaction is expected to be completed in the first quarter of next year.
The counter last closed at S$2.63 on Friday.