Amid recent reports of Global Logistic Properties (GLP) fielding offers for its $8.9 billion business, the Singapore-listed warehouse developer continues to expand its United States footprint by securing 42,000 square metres of logistics space through two acquisitions in the Chicago area last week.
GLP purchased the two distribution centres from what the company termed institutional owners for a combined $33 million. Both facilities are said to be 100 percent leased. The deal comes less than two months after the company established a $1.5 billion fund (GLP US Income Partners III) aimed at buying US logistics assets, as GLP continues to bolster its presence on American soil.
New Facilities Already Leased to FedEx and UPS
The first asset, is located in Bedford Park, Illinois, approximately 15 miles southwest of Chicago in Cook County. The 29,000 square metre distribution centre is already leased to major GLP customers such as FedEx, UPS and CSX Intermodal. The second asset includes 13,000 square metres of space in western Cook County, which is home to affluent Chicago suburbs such as Oak Park and is close to interstate highways connecting to the city’s urban core. Reports indicated that the two acquisitions were not made through the GLP US Income Partners III fund.
GLP’s Eastern Regional Director Amy Curry said in a statement, “the quality and location of these two facilities complement our Chicago portfolio well.”
“GLP remains on the lookout for opportunistic assets that will strengthen our network of state-of-the-art logistics facilities to better serve customers across the US,” Curry added.
The Singapore-based firm has rapidly established itself as the second largest operator of logistics facilities in the US, with a portfolio of 16 million square meters in total. Since acquiring a $8.1 billion US warehouse portfolio from Blackstone in 2014, GLP has continued to add to its North American assets, including acquiring a $1.1 billion set of facilities from Hillwood Development Company just five months ago.
Details of Buyout Bids Emerge
As it expands in the US market, GLP confirmed last Friday that it is fielding offers for a buyout of its $8.9 billion business. Media reports have linked private equity giants Blackstone and Warburg Pincus to bids to take over GLP, although the developer has yet to release details of its which companies have made formal pitches. A report this week by Bloomberg indicated that GLP CEO Ming Z Mei is joining a group including Chinese sovereign wealth fund CIC and Hopu Investment Management that hopes to take over the warehouse builder.
As one of the largest real estate developers in the world, GLP now owns and operates a global portfolio of over 52 million square meters across the US, China, Japan and Brazil.