Global Logistics Properties (GLP), a leading provider of modern logistics facilities in China, Japan and Brazil, announced this week that it had completed the acquisition of a $4.55 billion portfolio from Industrial Income Trust (IIT), creating one of the largest real estate deals this year. The deal will be closed over the course of 100 separate transactions and result in GLP owning 100% of IIT's portfolio, and ITT officially merging with Western Logistics II LLC, an affiliate of GLP.
"This transaction complements our existing portfolio well, expanding GLP's size and scale in the U.S.," GLP's Chief Operating Officer Stephen Schutte said in a press release. "We feel particularly good about the quality and location of the facilities, which have an average building age of 15 years and a strong concentration in major distribution markets. We are excited about the synergies the combined portfolio is expected to generate and see upside potential from increasing occupancy and rents."
The portfolio comprises 58 million square feet of state-of-the-art, in-fill logistics assets spread across 20 major markets. The largest markets include Los Angeles, Metro D.C. and Pennsylvania. The portfolio was 93% leased as of 30 June 2015, with a weighted average lease expiry of nearly 5.5 years. 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 deal comes just months after GLP made its first entrance into the US market with the acquisition of IndCor Properties this past May.
For more news and information visit Blumberg Partners.
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