Wednesday, July 29, 2015

GLP Make Mega Buy with $4.55B Warehouse Portfolio Purchase

In the latest industrial portfolio mega deal since the end of last year, Global Logistic Properties Ltd has agreed to acquire a 58 million-square-foot logistics portfolio spread across 20 major U.S. markets.

The $4.55 billion purchase from Industrial Income Trust will increase GLP's U.S. holdings by 50% to 173 million square feet, with the Singapore-based company becoming the second-largest warehouse and logistics owner and operator behind Prologis (NYSE: PLD) just a year after entering the U.S. market.

GLP won't hold most of the assets for very long after the expected Nov. 16 closing of the IIT deal. The company expects to boost occupancy to 95% while paring down its stake to 10% by next April. GLP said it's in negotiations with several new and existing funds and capital partners attracted by strong demand by major institutional investors for investment in U.S. logistics assets.

"This is an accretive opportunity for GLP that allows us to strengthen our U.S. market presence and growth prospects with minimal incremental overhead," said GLP Chief Executive Officer Ming Z. Mei in a statement.

The fund syndication offering for GLP's first U.S. income fund was significantly oversubscribed, and the company is confident of placing the bulk of the Industrial Income portfolio into its fund management platform by next spring.

GLP is also the largest logistics provider in China, Japan and Brazil, with a global portfolio encompassing more than 500 million square feet valued at $33 billion after the transaction.

The company teamed up with GIC, Singapore's sovereign wealth fund, to enter the U.S. market and buy Blackstone's IndCor Properties portfolio for $8.1 billion in a transaction that closed in January.

In another huge deal in April, a joint venture of Prologis and Norges Bank agreed to pay $5.9 billion for KTR Capital Partners and its 60 million square feet of U.S. industrial space,including eight development projects totaling 3.6 million square feet.
www.omegare.com

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