Blackstone wraps up $8.1bn Indcor sale to GIC

Plans by the New York-based private equity real estate giant to list its US mega sheds portfolio now canned as sale to the Singapore sovereign wealth fund is announced.

The Blackstone Group has announced the sale of its US industrial property business to GIC Private, Singapore’s preeminent sovereign wealth fund, in what would be one of the biggest property deals since the global financial crisis.

The transaction sees the New York-based private equity real estate giant offload 117 million square feet of logistics real estate across the US. Blackstone said the assets were mainly located in “desirable in-fill industrial markets, which benefit from proximity to key domestic and global transportation hubs, major logistics and warehouse/distribution networks, as well as large population concentrations.”

The sale to GIC also means that previously held plans by Blackstone to pursue a public listing for the company have been cancelled. The Chicago-based industrial landlord filed for an initial public offering with the US Securities and Exchange Commission in September and was planning to raise about $1 billion through the transaction, which would have valued the company at approximately $8 billion.

Blackstone sold the business on behalf of two of its global opportunity funds, Blackstone Real Estate Partners VI and Blackstone Real Estate Partners VII.

The firm formed IndCor in 2010, when it saw an opportunity to buy quality warehouse and logistics assets from distressed sellers during the bottom of the real estate cycle. Since then, Blackstone has grown the platform to become one of the largest US industrial owners.

IndCor typically buys portfolios of at least 1 million square feet. Some of its largest transactions have included the acquisition of a 16.3 million square foot portfolio from DEXUS Property Group and the 23.3 million square foot CalWest portfolio from Walton Street Capital, both in 2012. 

Tim Beaudin, IndCor chief executive officer, said: “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 long-term ownership with GIC.”

Closing of the deal is expected to occur in the first quarter of 2015. Eastdil Secured, the wholly-owned subsidiary of Wells Fargo & Company, Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone.