Singapore’s sovereign wealth fund GIC has teamed up with Centerbridge to buyout a US industrial REIT for US$660 million – its third bid for a North American REIT since September, indicating a serious push into the market.
The proposed deal would see the partners acquire the 85.2% of stock in the NASDA-listed Indus Realty Trust that Centerbridge does not currently own. Indus’ portfolio includes 42 industrial and logistics buildings across the US and originates in the tobacco manufacturer Culbro Corporation.
Earlier this month, GIC teamed up with Canada’s Dream Industrial REIT in a 90:10 joint venture to buy out the Summit Industrial Income REIT for C$5.9 billion (US$4.4 billion), which has a portfolio of 160 logistics properties across Canada. GIC's head of Americas real estate Adam Gallistel called described the acquisition of Summit's "premier portfolio of industrial properties defined by strong sector fundamentals, resilient cash flows, and stable market rent growth in key markets across Canada” as "another strong addition" to its real estate portfolio.
In September, the Singaporean investor forged a partnership with NYC-based Oak Street to acquire Store Capital, which owns more than 3,000 commercial and industrial properties across the US in a massive US$14 billion transaction. Gallistel said, “As one of the largest dedicated U.S. net lease real estate companies in a nearly US$4 trillion-dollar market, STORE Capital is a strong addition to GIC’s diverse portfolio of U.S. real estate investments. We are confident the Company will continue its trajectory of accretive growth by meeting the demand for long-term financing solutions from middle market US companies.”
Elsewhere in the global logistics market, GIC and Hong Kong-listed ESR formed an 80:20 joint venture to establish a US$600 million joint venture to acquire income-producing core industrial and logistics assets in India. The platform represents an extension of the existing partnership in India between the two, which was initiated in 2020, with the initial capital pool dedicated to investing in development and value-add logistics and industrial opportunities across India.
GIC has also extended its partnership with ESR in Australian logistics. In September and October, it backed two partnerships with a total of A$1.03 billion (US$680 million) of commitments, building on a previous venture formed in May 2021 in which it invested (US$376 million). GIC has now backed three ESR Australia Logistics Partnerships.
GIC has directly invested approximately US$76 billion in real estate globally from 2016, more than a quarter of which has been allocated to the US. Australia is the Singaporean fund’s second biggest market with 19% of investment, followed by China (7%), India (6%), the UK (5%), and Japan and Canada (both 4%). In the year-to-date, the US represents 34% of the total invested, followed by the UK (16%), Canada (14%), and Australia (10%) out of a total of US$21.6 billion – a record year of activity in the sector.