Dec 03, 2014

    GIC to acquire IndCor Properties for $10.6b

    SINGAPORE sovereign wealth fund GIC's affiliates will buy United States industrial platform IndCor Properties from Blackstone Group for US$8.1 billion (S$10.6 billion).

    As a result of the deal, IndCor will no longer pursue an initial public offering filed in September, Blackstone said in a statement yesterday.

    Reuters reported last month that GIC was leading a consortium to buy IndCor from Blackstone in a deal valued at about US$8 billion including debt.

    Chicago-based IndCor was formed in 2010 as a portfolio company of Blackstone, and has a footprint of warehouses and distribution centres across the US, according to its website.

    GIC has stepped up its real-estate purchases in recent months, buying office buildings in Tokyo and investing in Australian student accommodation as a way to diversify its portfolio and secure better yields.

    GIC is estimated by the Sovereign Wealth Fund Institute to manage around US$320 billion in assets. Real estate accounted for 7 per cent of its portfolio in the financial year to April 1, according to its annual report.

    The deal is expected to close in the first quarter of next year. Eastdil Secured, a unit of Wells Fargo; Citigroup; Barclays and RBC Capital Markets acted as advisers to Blackstone.