Thursday, November 5, 2015

Global Logistic Properties completes acquisition of US$4.55 billion US logistics portfolio with partners

Global Logistic Properties (GLP) has completed its acquisition of a US$4.55 billion ($6.4 billion) portfolio.

It has also established GLP US Income Partners II with China Life and two additional leading global institutional investors.

GLP US Income Partners II acquired the US$4.55 billion portfolio from Industrial Income Trust at a 5.6% cap rate. GLP is the asset manager.

The Class-A logistics portfolio is one of the highest quality industrial portfolios in the US and encompasses a total leasable area of approximately 57.9 million sq ft across 20 major markets.

Given that 97% of the acquired portfolio overlaps with GLP’s existing US platform, it expects to see significant synergies which will lead to improved operating performance between the two portfolios and enhanced customer relationships globally.

GLP says the transaction enlarges GLP’s US footprint by 50% by 173 million sq ft, making GLP the second-largest property owner and operator in the US within a year of market entry.

The group is also the largest provider of modern logistics facilities in China, Japan and Brazil.

M3 Capital Partners (HK) is acting as exclusive financial adviser to GLP in connection with the formation of GLP US Income Partners II.

Additional investors are expected to join GLP US Income Partners II by April 2016, with GLP retaining a stake of less than 10%.

China Life and the two global investors will have a 66% stake in GLP US Income Partners III, while the additional investors are estimated to hold a stake of 24%.

“This transaction is in line with our growth strategy of expanding into the best logistics markets internationally via our Fund Management Platform,” says Ming Z Mei, CEO of GLP.

Shares in GLP closed 2.7% higher at $2.28 on Wednesday.

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