Colorado Real Estate Journal - March 18, 2015

Singapore groups buy 2M sf in Denver with huge portfolio

Foreign capital acquired 2 million square feet of industrial space in Denver as part of the $8.1 billion purchase of the IndCor Properties portfolio – one of the largest logistics platforms in the United States.

Singapore-based Global Logistic Properties and GIC, Singapore’s sovereign wealth fund, bought the portfolio from real estate funds affiliated with The Blackstone Group. The portfolio spans 117 million sf of highquality industrial space in key U.S. markets and was 91 percent occupied.

GLP is a leading global provider of logistics facilities with 312 million sf in China, Japan and Brazil.

“This transaction establishes immediate scale in the U.S. as well as a strong platform for future growth,” Ming Z. Mei, GLP’s chief executive officer, said in a statement. “Given the quality and the strong market fundamentals, we are confident that we can increase the lease ratio and capture positive leasing spreads in the near future. The strong existing U.S. team which joins GLP further strengthens our team.” The deal involved 16 bulk distribution and smaller-bay warehouse properties in Denver’s leading industrial submarket, which is located along the eastern Interstate 70 corridor. It positions GLP/GIC as one of the larger owners of industrial properties in the market. Prologis is the largest owner with 5.5 million sf. Majestic Realty owns and operates 3 million sf.

GLP holds a 55 percent stake in the IndCor portfolio initially.

The fund syndication currently is oversubscribed, and the company expects to reduce its stake to 10 percent by August. GIC holds 45 percent.

The portfolio will be rebranded to and managed by GLP. It is concentrated primarily in markets with high barriers to entry and populations of 1 million or more that make them ideal for last mile e-commerce deliveries, according to GLP.

The transaction is in line with GLP’s growth strategy of expanding into the best logistics markets internationally via its fund management platform. The transaction brings the company’s assets under fund management to $20.4 billion.

“We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company’s future prospects under new longterm ownership with GIC,” IndCor CEO Tim Beaudin said in a statement prior to closing.