Blackstone buys logistics assets from Singapore’s GLP for record US$18.7 billion
- Deal to buy logistics assets is the largest private real-estate transaction ever, and a vote of confidence in the future of online retailing
Private equity giant Blackstone has agreed to buy US$18.7 billion worth of assets from Singapore logistics firm GLP in a deal that is touted to be the largest private real-estate transaction ever, and a vote of confidence in the future of online retailing.
The transaction will see Blackstone buy assets from three of GLP’s US funds, including 179 million square feet of urban, infill logistics assets, which would nearly double the size of Blackstone’s existing US industrial footprint.
Blackstone Real Estate’s global opportunistic BREP strategy will acquire 115 million sq ft for US$13.4 billion and its income-oriented non-listed REIT, Blackstone Real Estate Income Trust (Breit) will acquire 64 million sq ft for US$5.3 billion.
The deal underscores the growing importance of the logistics segment of real estate globally as e-commerce and consumption continue to be a bright spot.
“Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand. Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high quality portfolio,” said Ken Caplan, global co-head of Blackstone Real Estate.
“These properties are a complementary addition to our stabilised commercial real estate portfolio, which is oriented toward our highest conviction themes, such as logistics,” said Frank Cohen, chairman and CEO of Breit.
Alan Yang, chief investment officer of GLP, said the company built the portfolio within four years, adding that they would continue to look for opportunities to expand their footprint in the US market.
The deal between GLP and Blackstone is the latest among big-ticket acquisitions in the logistics sector globally.
In December, fund manager M&G Real Estate acquired a 50 per cent share in a portfolio of industrial properties across Sydney and Brisbane, bringing its total exposure to Australian real estate to A$2.37 billion (US$1.65 billion).
Despite the trade war between the US and China, e-commerce companies remain confident of their prospects for the year.
For example, Chinese e-commerce giant Alibaba Group Holding projected that its annual revenue would surpass 500 billion yuan (US$72.5 billion) this financial year. Alibaba is the owner of the South China Morning Post.
