GLOBAL LOGISTICS PROPERTIES US
Global Logistic Properties was founded in 2008 when the Singaporean GIC-backed company
acquired Prologis’ China operations and a stake in its Japanese property funds. It didn’t take long
for the company to gain notice. First, in Singapore when in 2010 it listed on Singapore Stock
Exchange in the largest ever real estate IPO globally. It then made its mark globally when it entered
the US four years later through the $8 billion acquisition of Blackstone’s IndCor—a deal that also
brought on board Chuck Sullivan, former head of global operations at Prologis. He was named
president and COO of GLP’s US operations in February 2015 as a part of the IndCor deal.
By 2015 GLP had become the second largest logistics property owner and operator in the US,
with $13 billion of assets under management.
Today the company has $50 billion of assets under management across real estate and private
equity segments globally, operating a 667 million square foot property portfolio.
Last year the company was taken private by a Chinese private equity consortium for $11.6 billion.
The deal was Asia’s largest private equity buyout.
The company’s impact on global industrial real estate cannot be overstated. In the first half of
2018, for instance, it signed more than 92 million square feet of global lease agreements—space
that the company likened to approximately 1,100 Empire State Buildings. Of that amount, 20. 8 million square feet was in the US,
of which 5. 7 million square feet were new lease agreements. GLP’s lease ratio in the US is 94%.
Its influence can be expected to grow as it experiments with new formats and technologies. In the UK it is currently developing
the country’s first three-story logistics facility on a speculative basis. It has also left its comfort zone of real estate with the launch
earlier this year of a $1.6 billion fund aimed at tech solutions for the industry. Called the Hidden Hill Modern Logistics Private
Equity Fund, it will be the only fund in China dedicated to investing in the logistics ecosystem, according to GLP .
Meanwhile it continues to focus on its bread-and-butter—its formidable logistics holdings—with additional acquisitions. In 2016 it
acquired $1.1 billion US logistics portfolio from Hillwood Development Co. Not all of its deals are blockbuster-sized though. Last
year it acquired 448,000 square feet of distribution facilities in the Chicago area for $33 million.
Said Amy Curry, GLP’s Eastern Regional Director, at the time: “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.
FIRST INDUSTRIAL REALTY TRUST
First Industrial Realty Trust was established as a REIT in 1993 based on the real estate holdings of Jay H. Shidler, the REIT’s then chairman of the board. Its original portfolio was a regional one but today the company’s properties spans the top industrial markets across
the US, with approximately 1,500 companies using its facilities as a base for their operations. The Chicago-based company reached this
achievement in part through a dizzying series of acquisitions via UPREIT transactions in 1997 that
totaled close to $900 million and brought in about 22. 9 million square feet to the portfolio.
The REIT’s history since then has been of strategic growth as it aimed to enter the top industrial
markets of the US via select acquisitions and through partnerships with private equity. For instance,
in 1998, it partnered with the Carlyle Group to invest in industrial properties in the US with the
goal of buying $300 million in bulk-warehouse and light-industrial properties.
In 2002 it established a fund with the Kuwait Financial House to acquire industrial properties in the
US and the following year it expanded that relationship to focus on net lease industrial properties.
In 2009 Bruce Duncan took the helm as CEO, helping to steer the company through Great
Recession’s fall out. When Duncan announced his retirement in 2016—he was then appointed
chairman of the REIT a role that he retains— he was lauded as having “significantly transforming
[the company’s] portfolio, operations and balance sheet and delivering strong financial performance.” After a search for a successor, Peter E. Baccile was named president. Baccile joined First
Industrial from UBS Securities, where he was Joint Global Head of the Real Estate, Lodging and
Leisure Group within the firm’s investment banking division. Prior to that, he spent 26 years at
Today the REIT is in command of an active pipeline and portfolio. Among the transactions it
struck in the second quarter of 2018 it placed in service two buildings, one which was fully leased
and the other partially leased, completed two developments in lease-up in Southern California and Phoenix totaling 1. 4 million
square feet and started construction of a 250,000 square-foot in Central Pennsylvania.
It also is still active with its partnerships: another item of note in Q2 for the REIT was a project-specific joint venture partnership
it formed with Diamond Realty, the US real estate investment arm of Mitsubishi Corp., which acquired 532 net acres in Phoenix.
The total purchase price was $49 million and First Industrial has a 49% interest in the venture.