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.

Time Warner Sells Manhattan HQ for $1.3B to Related Cos.

Time Warner Inc. announced this week that it had sold its 1.1 million square foot headquarters building in Manhattan for $1.3 billion to a venture of Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and GIC in a sale-leaseback deal. While Time Warner will continue to lease its current office space until early 2019, the company has plans to relocate to 30 Hudson Yards in the office development by Related and Oxford Properties Group, expecting to acquire more than one million square feet and occupy the space by the end of 2018. Eastdil Secured's Douglas Harmon, Adam Spies and Kevin Donner represented Time Warner in the transaction with the Abu Dhabi fund. Studley is representing Time Warner and CBRE is representing Related and Oxford with respect to Time Warner's planned acquisition of space in Hudson Yards for its new corporate headquarters.

"We see significant upside in leasing the high quality office space following Time Warner Inc.'s planned relocation to 30 Hudson Yards. We believe strong demand for this first-rate office property will translate into a stable income stream which suits GIC as a long-term investor," said Tia Miyamoto, regional head of Americas at GIC Real Estate. "Time Warner Center is one of the premier mixed-use projects in the country."

Oxford Chief Executive Officer Blake Hutcheson said, "Time Warner has shown incredible vision not only in its core business of storytelling, but also in its commitment to establishing a collaborative and creative space. We are very excited to partner with Time Warner alongside Related, and to deliver a business community in which Time Warner will simply thrive."

Time Warner Center is a 2.8 million-square-foot mixed-use complex at the southwest corner of Central Park, which, in addition to office and flex space, also houses a Mandarin Oriental hotel, Jazz at Lincoln Center and some of the city's most expensive condominiums. The long-anticipated Time Warner Center purchase works out to about $1,182 per square foot, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.