<article>Singapore-listed <a href="http://www.glprop.com/" target="_blank">Global Logistic Properties Ltd </a>(GLP) Wednesday announced that it had reached a deal to acquire a $4.55 billion US logistics portfolio from Industrial Income Trust (IIT).</article>

Singapore-listed <a href="http://www.glprop.com/" target="_blank">Global Logistic Properties Ltd </a>(GLP) Wednesday announced that it had reached a deal to acquire a $4.55 billion US logistics portfolio from Industrial Income Trust (IIT).
GLP, which intends to inject the portfolio into its fund management platform, said it would own 100% of the portfolio when the deal closes by 16 November 2015. But it plans to sell stake and reduce its holdings to 10% by April 2016.
“Demand from major institutional investors to invest with GLP in US logistics real estate is strong, with GLP in negotiations with several new and existing capital partners,” the company said in a statement.
This deal enlarges GLP&#8217;s US footprint by 50% to 173 million sq ft (16.1 million sqm), and makes it the second largest logistics property owner and operator in the US within a year of market entry. It is also the largest provider of modern logistics facilities in China, Japan and Brazil.
Post this transaction, GLP&#8217;s global portfolio will encompass more than 500 million sq ft (47 million sqm) valued at approximately $33 billion, the company said.
Ming Z. Mei, Chief Executive Officer of GLP, said: &#8220;This is an accretive opportunity for GLP that allows us to strengthen our US market presence and growth prospects with minimal incremental overhead. The fund management platform is one of GLP&#8217;s main sources of capital to fund our growth. The fund syndication offering for our first US income fund was significantly oversubscribed. Building on the positive momentum, we remain confident of injecting this portfolio into our fund management platform by April 2016.&#8221;
The company said its initial equity commitment &#8211; 100% ownership day one &#8211; of $1.9 billion will be funded by cash on hand and existing credit facilities. GLP also said it does not need to issue additional equity to fund the acquisition as it had over $2.3 billion of existing cash. The company also has approximately $2.9 billion of committed long-term financing for the acquisition, and post the deal, the US would represent 6% of its net asset value.
Stephen Schutte, Chief Operating Officer of GLP, said: &#8220;This transaction complements our existing portfolio well, expanding GLP&#8217;s size and scale in the US. 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.&#8221;
Earlier this month, GLP had <a href="http://infopub.sgx.com/FileOpen/21072015_GLP_Establishes_USD7_billion_CLF_II.ashx?App=Announcement&amp;FileID=360782" target="_blank">announced</a> the setting up of a $7 billion China-based logistics infrastructure fund. The company’s second China-focused logistics infrastructure fund is more than double of its earlier fund, that had closed at $3 billion. It attributed the $7 billion outlay for its China Focused Fund II (CLF II) to size of the market opportunity and strong demand from investors. Here, GLP had said that it would hold a 56 per cent stake in CLF II, and added that it had commitments from leading global institutions, including some of the world’s largest national pension and sovereign wealth funds. GLP, however, did not name these investors.
Also Read: <a style="color: #ff0000;" title="GLP launches $7b fund for China expansion" href="http://www.dealstreetasia.com/stories/glp-launches-7b-fund-for-china-expansion-9342/" rel="bookmark">GLP launches $7b fund for China expansion</a>
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GLP Wednesday announced that it had reached a deal to acquire a $4.55 billion US logistics portfolio from Industrial Income Trust (IIT).

GLP to acquire $4.55b US logistics portfolio

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GLP to acquire $4.55b US logistics portfolio

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