Global private equity firm Blackstone and logistics REIT Prologis are said to be in fray to get the US performance of Singapore’s Global Logistics Properties (GLP) in a deal pegged at $20 billion, the Wall Street Journal reported.
The acquisition is said to aim at building an industrial warehouse giant. The development follows news that GLP was seeking an IPO for its US-based unit.
Could be reached. However, the earlier planned IPO also remains a viable option, according to the media report.
GLP entered the US market in 2015 and has become the nation ’s second largest logistics land owner and operator with over 1,350 assets across 36 US markets, serving domestic and global producers, retailers and e-commerce platforms like Ford, Tesla, Walmart, Samsung and Amazon.
The local performance closed 2018 of 96 per cent, and executed more than 1,100 lease transactions covering 40 million square feet, compared to 209 million square feet worldwide, according to an announcement earlier this year.
Meanwhile, GLP’s global business is a portfolio of $64 billion in assets under management across private equity and real estate and 785 million square feet.
The two Prologis and Blackstone have a historical connection to the Singaporean logistics giant. GLP was formed in 2009 as the Government of Singapore Investment Corporation (GIC) acquired Prologis’ China and Japan assets and rebranded it.
In 2015, GLP completed the purchase of a majority interest in IndCor Properties from Blackstone for $8.1 billion, marking the US entry.
Buying back GLP’s American performance is known to increase Blackstone’s warehouse area in the nation by a third. The private equity company, with $140 billion estate AUM, reported 561 million square feet of logistics properties at the end of the quarter.
While divesting the US asset, GLP has beefed up investments in Europe and Asia. Since late 2018, it has established funds such as the $5.6-billion Japan Development Fund, $2.3-billion GLP Continental Europe Development Partners I after the $4-billion GLP EIP collection, a $2-billion China fund in partnership with GIC, and most recently it got a commitment from Allianz to invest $600 million in its China and Japan vehicles.
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