Global Logistic Properties (GLP) is reengineering its $8 billion US Income Partners I fund by agreeing to sell a 45 percent stake to three equity investors, it has revealed.
Singapore-based GLP is to use the proceeds – which should top $1.44 billion – to further expand its fund management platform, with the deal set to close in the second quarter of 2016, it explained.
The US Income Partners I fund is comprised of $8.1 billion of assets that GLP and partner GIC Private agreed to buy from The Blackstone Group in December 2014 and totals 115 million square feet in 29 major US markets. The total equity in the fund is $3.2 billion and GLP is reducing its stake from 55 percent to 10 percent. It said in a statement that it expected to book a net divestment gain equivalent to the net income earned during the period held for sale. “The agreed sale price of the 45 percent syndicated interest is consistent with the price GLP paid plus retained earnings,” it said.
After the transaction, GIC will retain its 45 percent interest in the assets but new LPs come in alongside it – two leading global institutional investors from Asia and one from North America. One of the Asian investors is new to GLP’s fund management platform. GLP will remain as the asset manager.
Ming Mei, chief executive officer of GLP, said: “We are delighted to welcome the new capital partners into GLP US Income Partners I. The offering was oversubscribed with significant investor interest.” He added: “The fund management platform is one of GLP’s main sources of capital to fund growth. We remain focused on further expanding our fund management platform and driving higher risk-adjusted returns.”
The company has a portfolio of $28 billion across China, Japan, Brazil and the US.