Blackstone Group LP is planning to sell IndCor Properties Inc to a group of investors led by Singapore’s sovereign wealth fund GIC Private Ltd, for over $8 billion, according to a report in Bloomberg.
IndCor Properties Inc owns industrial real estate assets (about 11 million square meters of warehouses) in the US. The company’s properties include a 16.3 million-square-foot portfolio from DEXUS Property Group and a 23.3 million-square-foot CalWest portfolio from Walton Street Capital.
Quoting executives with knowledge of the development, the report said the GIC-led investors were looking at $5 billion debt to finance the deal.
IndCor had recently planned a public listing at the same valuation. If (the report noted) the deal with GIC does not go through, the industrial real estate company would go ahead with its proposed initial public (IPO) offering.
This deal is the latest in the Singapore’s sovereign wealth fund GIC’s real estate-related investment spree. Earlier this month, it has forayed into New Zealand by setting up a real estate joint venture with Goodman Property. Last month, GIC had concluded a series of real estate deals, including making its first corporate investment in Turkey, where it bought a minority stake in Istanbul-based Rönesans Gayrimenkul Yatirim (RGY) for €250m ($312.4 million).
In October, the fund it had bought a building in Tokyo – Pacific Century Place Marunouchi – for $1.7 billion from Secured Capital Japan Co., the real estate arm of Hong Kong-based alternative-asset manager PAG.
In September this year, Singapore state fund along with two Canadian pension funds invested $700 million in Greenwich-based XPO Logistics Inc., that in into airfreight forwarding and warehouse management.
GIC has a history of buying real estate assets from Blackstone, the world’s largest PE firm. Last year, in a $2.7 billion deal, the Singapore fund bought 50% of Blackstone’s stake in London’s Broadgate office.
According to the company website, Chicago-based IndCor was formed in 2010 as a portfolio company of The Blackstone Group L.P and operates in 29 key markets in 23 states.