OSLO: Global Logistic Properties Ltd. agreed to buy more than 200 warehouses from Industrial Income Trust Inc. for $4.55 billion in a deal that will make it the second-largest owner of U.S. industrial real estate.
In its second American acquisition this year, Singapore-based GLP will purchase assets that comprise 58 million square feet (5.4 million square meters) in 20 major markets, including Los Angeles, Washington and Pennsylvania, GLP said in a statement Wednesday.
The deal will increase GLP’s U.S. assets by 50 percent to 173 million square feet, and the company will surpass Duke Realty Corp. to be the country’s second-biggest owner of industrial real estate, after Prologis Inc. The acquisition also will increase GLP’s revenue from fund-management fees by about 50 percent, said Chief Executive Officer Ming Mei.
“We’re focusing on continuing to grow this asset, improve the lease-up ratios and increase the cash yield,” Mei said in a telephone interview Wednesday.
U.S. warehouses are attracting investors as Web commerce helps drive demand for the storing and transporting of goods. Prologis in April teamed with Norway’s sovereign wealth fund for a $5.9 billion purchase of U.S. industrial properties and related assets.
GLP said it expects to own 100 percent of the assets when the deal with Industrial Income Trust closes, expected by Nov. 16, and reduce its stake to 10 percent by April by selling part of its interest to institutional investors. The properties will become part of GLP U.S. Income Fund II.