Global Logistic Properties To Acquire US$4.6 Billion Logistics Portfolio

Global Logistic Properties (GLP) has entered into a definitive agreement to acquire a US$4.55 billion logistics portfolio from Industrial Income Trust.

The portfolio is one of the highest quality portfolios in the US, comprising 58 million square feet of state-of-the-art, in-fill logistics assets spread across 20 major markets.

The portfolio was 93 percent leased as of 30 June 2015, with a weighted average lease expiry of nearly 5.5 years, and GLP is focused on increasing the lease ratio to 95 percent.

The portfolio is to be acquired at a 5.6 percent capitalisation rate and GLP’s target 10 percent equity stake of US$190 million is expected to generate compelling returns within the first year of investment.

With this transaction, GLP will become the second largest logistics property owner and operator in the US as its US footprint gets enlarged by 50 percent to 173 million square feet.

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