Singapore's GIC and US firm to invest US$1.5 billion in US logistics assets
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Singapore's GIC and US firm to invest US$1.5 billion in US logistics assets. Singapore sovereign wealth fund GIC Pte Ltd and US real estate firm Realty Income Corp have formed a strategic partnership to invest a combined US$1.5 billion into logistics property assets in the US. They are focused on "build-to-suit development of high quality logistics real estate pre-leased under long-term net leases to tenants with investment grade credit profiles in the US," GIC and Realty Income say in a statement on January 20. Net lease contracts shift most property-related costs from the landlord to the tenant. According to Goh Chin Kiong, GIC's chief investment officer for real estate, pairing the wealth fund's long-term capital with the US firm's expertise and market access will allow them to unlock "significant value" in the logistics sector. Cai Wenzheng, GIC's head of Americas for real estate, says the wealth fund has "high conviction" in the net lease sector "to generate strong, long-term, predictable cash yields for its portfolio". "This partnership complements our existing direct exposure to the US net lease space, unlocking direct access to the logistics investment-grade segment of the market where we expect continued growth," Cai says. GIC doesn't publicly disclose its asset data. The Sovereign Wealth Fund Institute estimates the wealth fund had around $936 billion of...
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