GIC Buys Blackstone AZ Portfolio for $140M

GIC Private Limited, formerly known as Government of Singapore Investment Corporation, a sovereign wealth fund established by the Government of Singapore, has purchased 14 commercial and industrial properties in Phoenix, Tempe and the West Valley for more than $140 million. GIC, which also owns the Arizona Biltmore Resort & Spa, bought the 14 Valley properties as part of its acquistion of Blackstone Group's IndCor Properties 117 milion-square-foot portfolio, according to a Phoenix Business Journal article. Eastdil Secured (a wholly-owned subsidiary of Wells Fargo & Company), Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone.

IndCor's assets are principally located in desirable in-fill industrial markets, which benefit from proximity to key domestic and global transportation hubs, major logistics and warehouse/distribution networks, as well as large population concentrations.

Tim Beaudin, IndCor CEO, said: "We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company's future prospects under new long-term ownership with GIC."

Blackstone announced that funds affiliated with Blackstone Real Estate Partners VI & VII have agreed to sell their wholly-owned U.S. industrial platform, IndCor Properties, to affiliates of GIC, Singapore's sovereign wealth fund, for $8.1 billion.

For more news and information visit Blumberg Capital Partners.

GLP, Indcor Deal Closes

Global Logistic Properties (GLP) and Singapore's sovereign wealth fund completed the acquisition this week of IndCor Properties, the Chicago-based industrial landlord. Blackstone announced this past December that Blackstone Real Estate Partners VI & VII had agreed to sell IndCor Properties to affiliates of GIC, Singapore's sovereign wealth fund, for $8.1 billion. The portfolio, which spans 26 U.S. markets, including Chicago, is 91% leased, according to Global Logistic.

Ming Z. Mei, GLP's CEO, says the acquisition, which represented a significant discount to replacement cost, establishes "immediate scale in the US" for his company, along with "a strong platform for future growth. It is consistent with our strategy to operate in the best markets globally and to grow our fund management platform. Given the quality and the strong market fundamentals, we are confident that we can increase the lease ratio and capture positive leasing spreads in the near future. The strong existing US team which joins GLP further strengthens our team."

When GLP and GIC, Singapore's sovereign wealth fund, announced their acquisition this past December, Tia Miyamoto, regional head, Americas, GIC Real Estate, said the two companies bought the IndCor platform because it's "an attractive point in the recovering US industrial market cycle. As a long-term investor, we believe this investment will achieve stable income growth and will allow us to add value over the long run." GIC will maintain a 45% stake in the portfolio.

For more news and information visit Blumberg Capital Partners.

GLP, GIC Make $8.1B IndCor Purchase

Blackstone announced this week that Blackstone Real Estate Partners VI & VII agreed to sell IndCor Properties to affiliates of GIC, Singapore's sovereign wealth fund, for $8.1 billion. GIC's partner in the acquisition is Global Logistic Properties Ltd., one of the largest owners of warehouses and other industrial property in Asia, according to a Wall Street Journal article. GIC is estimated by the Sovereign Wealth Fund Institute to manage around $320 billion in assets; real estate accounted for 7% of its portfolio in the financial year to April 1, according to its annual report. Closing is expected to occur in the first quarter of 2015. Eastdil Secured, Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone in the transaction.

Tim Beaudin, IndCor CEO, said: "We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company's future prospects under new long-term ownership with GIC." As a result of this transaction, IndCor will no longer be pursuing an IPO. The sale is the latest in a string by Blackstone's real estate unit, which has returned more than $16 billion to fund investors since the end of the third quarter of 2013. This year the firm has sold five Boston office buildings totaling 3.3 million square feet, along with shares of hotel operator Extended Stay America Inc., shopping-center owner Brixmor Property Group Inc. and Hilton Worldwide Holdings Inc., according to a Bloomberg report.

For more news and information visit Blumberg Capital Partners.