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Blackstone $BX Said to Acquire LBA West Coast Logistics Portfolio for $1.5B

Blackstone $BX Said to Acquire LBA West Coast Logistics Portfolio for $1.5B

The Wall Street Journal. The move comes a few days after Singapore’s GLP (SGX: MC0/GLPL), a leading global provider of modern logistics facilities, agreed to acquire a $1.1 billion US logistics real estate portfolio from Dallas/Fort Worth-based Hillwood Development Company LLC, controlled by Ross Perot Jr. Singapore’s sovereign wealth fund GIC, is the controlling shareholder and largest investor in GLP. The Hillwood portfolio reportedly includes industrial buildings in Dallas/Fort Worth, Atlanta, Chicago, Los Angeles, Ohio and Pennsylvania. Hillwood’s AllianceTexas, the company’s flagship project, envelops the world’s first industrial airport, Fort Worth Alliance Airport, and includes the Alliance Global Logistics Hub, the nation’s largest inland port. In 2014 Blackstone scrapped plans for an IPO for its U.S. logistics portfolio IndCor Properties Inc. and sold the company to Singapore’s sovereign wealth fund GIC, for $8.1 billion, according to The Real Deal. Blackstone is the largest real estate private equity firm in the world today with $103 billion of assets under management. The Blackstone Real Estate platform, headed by Jonathan D. Grey, encompasses investments across the risk spectrum from opportunistic to core+ to debt. The firm’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major investments include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities. In May this year, Blackstone was said to be considering either the sale of its pan-European Logicor logistics unit with 137 million square feet of space at a valuation of $11 billion, or moving forward with an IPO. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust (BXMT). In July, Blackstone Real Estate Partners III fund agreed to sell the life science and medical real estate assets of Wexford Science & Technology LLC to Chicago-based real estate investment trust Ventas Inc. (NYSE: VTR), for $1.5 billion in cash. Blackstone had acquired Wexford parent Biomed Realty Trust (NYSE: BMR) in an $8 billion deal earlier this year. The Wexford sale came within days after Blackstone Real Estate Partners VIII agreed to acquire seven West Coast office properties for $1.16 billion in cash from Houston-based Hines Real Estate Investment Trust, after which Hines REIT was being liquidated. Irvine, Calif.-based LBA Realty was founded in 1991 by Steve Layton and Phil Belling. LBA’s initial focus during the early ’90s was to act as “court appointed receivers overseeing foreclosures and bankruptcies for many of the major banks and life insurance companies,” said Belling. “In 1995, LBA launched an investment joint venture with AEW Capital Management. As part of those ventures, we acquired more than $850 million of office and industrial properties. This endeavor was very successful for both AEW and LBA,” Belling added. “We put our first commingled fund together in 2000 and have closed on five additional funds since then,” said LBA principal, Steve Briggs. “The most recent, LBA Realty Fund V, closed with $776 million of equity commitments. All of our funds have included a balance of core-plus or value-added office and industrial properties throughout the key markets in the Western United States. LBA’s portfolio today comprises 38 million square feet — 25 million of industrial and 13 million of office — with approximately $2.5 billion in assets under management.” LBA now owns and operates a portfolio of industrial properties comprising over 26 million square feet located throughout the western United States. The facilities include state-of-the-art, high bay distribution space, light manufacturing, multi tenant business parks and R&D space. The site locations range from major port and airport adjacent locations, including Los Angeles, Oakland, San Francisco, San Diego and Seattle, to more regional inland locations, such as Dallas, Denver, Phoenix and Las Vegas.]]>

Ross Perot Jr Sells $1.1B Hillwood Logistics RE Portfolio to Singapore's GLP

Ross Perot Jr Sells $1.1B Hillwood Logistics RE Portfolio to Singapore's GLP

GLP (SGX: MC0/GLPL), a leading global provider of modern logistics facilities, said it has agreed to acquire a US$1.1 billion US logistics real estate portfolio from Dallas/Fort Worth-based Hillwood Development Company LLC, controlled by Ross Perot Jr. Singapore’s sovereign wealth fund, GIC, is the controlling shareholder and largest investor in GLP. The 15 million sq ft portfolio has a strong concentration in desirable locations expected to benefit strongly from the growth of e-commerce in the US, as online retail logistic space is said to comprise over 40% of the portfolio’s leased area. Major warehouse logistics tenants are said to include FedEx, UPS, and Amazon. “The portfolio being acquired from Hillwood is one of the highest quality logistics real estate portfolios in the US,” said Chuck Sullivan, president and chief operating officer of GLP US. The portfolio reportedly includes industrial buildings in Dallas/Fort Worth, Atlanta, Chicago, Los Angeles, Ohio and Pennsylvania. Hillwood’s AllianceTexas, the company’s flagship project, envelops the world’s first industrial airport, Fort Worth Alliance Airport, and includes the Alliance Global Logistics Hub, the nation’s largest inland port. Recognized as one of the most successful public-private partnerships in the nation, the 18,000-acre AllianceTexas development has generated approximately 60 billion in economic impact, created over 45,000 jobs and dramatically transformed north Fort Worth and surrounding communities. alliance_global_logistics_hubThis transaction enlarges GLP’s US footprint to 187 million sq ft, with the US representing 8% of GLP’s net asset value. GLP is the second largest logistics property owner and operator in the US, after San Francisco-based REIT Prologis (NYSE: PLD), and the largest in China, Japan and Brazil. A US$700 million portfolio is in the process of being acquired in December 2016, with the remaining US$400 million development portfolio to be acquired in phases upon completion and full lease-up. The deal is expected to be funded through US$470 million in equity and US$635 million in debt, which GLP expects to syndicate to a group of investors by initial closing. GLP will act as the asset manager and expects to retain a stake of approximately 10% post-syndication, the company said. GLP expects to fund its equity commitment with cash on hand and existing credit facilities. GLP is a fund manager, developer and owner-operator of modern logistics facilities in China, Japan, Brazil and the United States, with US$38 billion in assets under management. As of 30 June 2016, GLP owns and operates a global portfolio of 52 million square meters (560 million square feet), comprising 2,515 completed properties across 118 cities. GLP’s 4,000 customers include some of the world’s most dynamic manufacturers, retailers and third party logistics companies. GLP was listed on the Singapore Securities Exchange in 2010, in one the world’s largest real estate IPOs globally. As of August 31, 2016, GLP had a market capitalization of US$6 billion. Hillwood is a full service real estate developer, investor and advisor of high quality real estate properties, with more than 114-million square feet of industrial development and acquisitions to date. The company is actively involved in development, acquisitions, construction, leasing, property management and asset management of high quality, well located, flexible and functional industrial properties located throughout North America and Europe. Hillwood is ranked among the top ten real estate developers in the United States. Henry Ross Perot Jr., the elder son of billionaire businessman and former United States presidential candidate, Ross Perot. Perot Jr. serves as the chairman of multiple companies, including Hillwood, which he founded in 1988, and the Perot Group, which manages the various Perot family interests, including real estate, oil and gas, and financial investments.]]>