GIC Pte Ltd, Singapore’s sovereign wealth fund, has acquired a portion of Brooklyn’s Industry City, New York’s largest privately-owned industry property, from investment firm Angelo Gordon, according to a Wall Street Journal report.
The report did not mention how much GIC paid for the stake in the Sunset Park property but the deal reportedly valued the sprawling industrial park at $1.3 billion.
A venture of Angelo Gordon, Jamestown LP, and Belvedere Capital Real Estate Partners bought a 50-per cent stake and recapitalised Industry City in 2013. Angelo Gordo still holds a stake in the project after the GIC sale. The other owners are not affected by the deal.
The acquisition also comes as owners of the property have announced $1-billion expansion plan that would add roughly 1.3 million square feet of space to the complex by 2027. The local community, however, has reportedly opposed the development.
Industry City has been gaining traction as a hub of manufacturing, creative, technology, and other businesses. As of October 2019, the industrial park had about 550 mostly small businesses that employed 8,000 workers, up from 150 businesses that employed 1,900 in 2013.
GIC has been investing in trophy office buildings and other real assets in the US and over 40 countries. In October, it entered an agreement to acquire four hotels in the US for $249 million through its recently formed joint venture with NYSE-listed real estate investment trust Summit Hotel Properties.
The transaction marks the first set of deals made by the joint venture between GIC and Summit Hotel, which was set up specifically to acquire US hotel assets.
Just this week, the firm announced that it has acquired Beijing’s LG Twin Towers from South Korean conglomerate LG Group, for over 8 billion yuan ($1.15 billion)
Located in Beijing’s Guomao Central Business District, the asset is a high-quality integrated development that comprises two Grade-A office towers and a retail podium.
GIC, which owns over $100 billion in assets under management (AUM), has been investing in China for more than two decades. Established in 1981, Singapore-based GIC invests across a wide range of asset classes such as real estate, private equity, equities, and fixed income.