GLP Acquires Multi-Billion U.S. Logistics Portfolio
Global Logistic Properties (GLP), a leading investor in warehousing and logistics facilities, has agreed to acquire a $4.55 billion logistics portfolio in the United States from Industrial Income Trust.
GLP expects to own 100 percent of the portfolio upon closing in mid-November 2015 and then pare down its stake to 10 percent by April 2016 by selling off 90 percent to institutional investors.
The announcement came days after GLP and a consortium of investors established a $7 billion China-focused logistics infrastructure fund aimed at developing modern warehouse facilities in that country.
“This transaction complements our existing portfolio well, expanding GLP’s size and scale in the U.S.,” said Stephen Schutte, the company’s chief operating officer of GLP. “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.”
Once the transaction is completed, the U.S. would represent six percent of GLP’s net asset value.
The portfolio being acquired by GLP comprises 58 million square feet of logistics assets spread across 20 major markets, including Los Angeles, Metro D.C., and Pennsylvania. The portfolio was 93 percent leased as of the end of June.
This transaction will enlarge GLP’s footprint in the U.S. by 50 percent to 173 million square feet, making GLP the second largest logistics property owner and operator in the U.S., next to the U.S.-based Prologis. GLP is currently the largest provider of logistics facilities in China, Japan and Brazil. After this transaction, GLP’s global portfolio will encompass more than 500 million square feet valued at $33 billion.