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Deals & Dealmakers

GLP completes $4.5B logistics portfolio buy

GLP, the global provider of modern logistics facilities, has completed its acquisition of a $4.55 billion portfolio and established GLP US Income Partners II2 with China Life and two additional global institutional investors.

Industrial Income Trust Inc. has merged into Western Logistics II LLC, an affiliate of GLP.
Additional investors are expected to join GLP US Income Partners II by April 2016, with GLP retaining a stake of less than 10 percent.

Ming Z. Mei, chief executive officer of GLP, said: “Investor demand to partner with us on this portfolio is strong and we are very pleased to complete this acquisition together with three leading global institutional investors. This transaction is in line with our growth strategy of expanding into the best logistics markets internationally via our Fund Management Platform.”

GLP US Income Partners II acquired the $4.55 billion portfolio from Industrial Income Trust at a 5.6 percent cap rate. GLP is the asset manager.

The Class-A, state-of-the-art logistics portfolio is one of the highest quality industrial portfolios in the US and encompasses a total leasable area of approximately 57.9 million square feet across 20 major markets.

Given that 97 percent of the acquired portfolio overlaps with GLP’s existing US platform, GLP expects to see significant synergies which will lead to improved operating performance between the two portfolios and enhanced customer relationships globally.

This transaction enlarges GLP’s US footprint by 50 percent to 173 million square feet with GLP becoming the second largest logistics property owner and operator in the US within a year of market entry.

GLP is also the largest provider of modern logistics facilities in China, Japan and Brazil.
M3 Capital Partners (HK) Limited is acting as exclusive financial advisor to GLP in connection with the formation of GLP US Income Partners II.

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