This article is from the Australian Property Journal archive
BLACKSTONE has extended its lead as the world’s largest real estate asset manager after acquiring Singaporean GLP’s logistic and industrial assets in the United States for US$18.7 billion in the largest-ever private property transaction globally.
The transaction totals 179 million square feet of urban, infill logistics assets, nearly doubling the size of Blackstone’s existing US industrial footprint.
Blackstone Real Estate’s global opportunistic BREP strategy will acquire 115 million square feet for $13.4 billion and its income-oriented non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will acquire 64 million square feet for $5.3 billion.
Singapore-based global logistics investor GLP entered the U.S. real estate market in 2015 and through a series of major acquisitions became the second-largest owner of logistics real estate assets in the country with acquisitions in 36 major markets.
GLP chief investment officer Alan Yang said GLP remains committed to the US market.
“GLP was able to leverage our deep operating expertise and global insights in the logistics sector within four years to build and grow an exceptional portfolio. We are proud of the business our team built and are confident it will continue to flourish under Blackstone’s leadership. We are looking forward to expanding our footprint in the United States to continue to seize key opportunities in the U.S. market.” Yang said.
Blackstone Real Estate global co-head Ken Caplan said the investment will help the group meet the growing e-commerce demand.
“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,” he added.
BREIT CEO and chairman Frank Cohen said the properties are a complementary addition its commercial real estate portfolio, which is oriented “toward our highest conviction themes, such as logistics.”
The transaction will extend Blackstone’s lead as the number one real estate asset manager globally.
Meanwhile GLP recently teamed up with Germany’s Allianz to invest US$600 million in China and Japan logistics.
Australia’s Goodman Group is on track to increase its AUM to AU$40 billion and said demand for industrial property globally is outstripping supply.
Australian Property Journal
