GLP becomes second largest logistics property owner and operator in the U.S. within a year of market entry
Singapore (July 29, 2015) – Morrison & Foerster is advising Global Logistic Properties Limited (GLP), the leading provider of modern logistics facilities in China, Japan, and Brazil, on the acquisition of a US$4.55 billion U.S. logistics portfolio from Industrial Income Trust. GLP intends to inject the portfolio into its fund management platform.
As detailed in the press release issued by GLP, a definitive agreement was entered into in July 2015 with GLP expecting to own 100% of the portfolio upon closing by November 16, 2015, and paring down its stake to 10% by April 2016. The transaction will enlarge GLP’s U.S. footprint by 50% to 173 million square feet (16.1 million square meters), with GLP becoming the second largest logistics property owner and operator in the U.S. within a year of market entry. Subsequent to this transaction, GLP’s global portfolio will encompass more than 500 million square feet (47 million square meters) and approximately US$33 billion of assets under management worldwide.
Morrison & Foerster is advising GLP on the transaction, with a corporate deal team led by Washington, D.C. partner David Slotkin, Singapore partner Eric Piesner, New York partner Jeff Bell, and Denver of counsel Erik Knudsen. Advice was also provided by New York partner Michelle Jewett and San Francisco partner Bernie Pistillo on tax matters; Los Angeles partner Tom Fileti, Los Angeles partner Marc Young, New York partner Tom McGovern, Los Angeles of counsel Susannah Cupp and New York of counsel Guy McPherson on real estate and finance matters; Washington, D.C. partner Nicholas Spiliotes and Washington, D.C. of counsel Aki Bayz on anti-trust and CFIUS matters; and San Francisco partner Bill Tarantino and San Francisco associate Alejandro Bras on environmental matters.
Morrison & Foerster has advised GLP on many of its market leading transactions, including on its co-investment with an affiliate of Singapore sovereign wealth fund GIC Pte Ltd in the acquisition from the Blackstone Group of one of the largest real estate portfolios in the United States, which has been injected into GLP’s fund management platform. The transaction, valued at US$8.1 billion, marked GLP’s first foray into the U.S. market. The firm also advised GLP on the expansion of its US$2.2 billion joint venture in Japan with the Canada Pension Plan Investment Board, as well as on the formation of a US$1.1 billion fund in Brazil, GLP Brazil Income Partners II (“GLP BIP II”) and the acquisition of the portfolio of assets being injected into GLP BIP II. The firm also represented an affiliate of GLP in the formation of its US$3 billion CLF I fund in November 2013, then the world’s largest China-focused logistics infrastructure fund, and on the recent establishment of CLF II, a US$7 billion infrastructure fund, which was on its formation the largest logistics infrastructure fund based in China; represented GLP in a US$1.6 billion joint venture for the acquisition of 15 logistics properties in Japan; and represented GLP in a US$1.4 billion joint venture for the acquisition of 40 logistics properties in Brazil.
Morrison & Foerster opened its Singapore office, the firm’s fifth in Asia, in early 2013 to support clients’ deepening commitments to South and Southeast Asia. Since that opening, the firm has worked on a number of major cross-border transactions originating in Singapore. In addition, Morrison & Foerster has the leading real estate practice in Asia, with over 35 full-time dedicated real estate attorneys resident across the firm’s five Asian offices.