According to Reuters, Singapore sovereign wealth fund GIC Pte is leading a consortium to buy U.S.-based IndCor Properties from Blackstone Group in a deal valued at about $8 billion including debt, a person familiar with the matter said on Tuesday.
IndCor was formed in 2010 as a portfolio company of Blackstone and has a footprint of warehouses and distribution centers across the United States, according to the company website.
GIC [GIC.UL] has stepped up its real estate purchases in recent months, buying office buildings in Tokyo and investing in Australian student accommodation as a way to diversify its portfolio and secure better yields.
“Talks are still ongoing, we don’t know whether there will be a deal yet,” said the person, who declined to be identified as the discussions are confidential.
A spokeswoman for GIC declined to comment, while Blackstone did not reply to an email seeking comment sent after business hours in New York.
Chicago-based IndCor said in September it had filed with the Securities and Exchange Commission for an initial public offering. GIC is seeking $5 billion in debt to finance the acquisition, Bloomberg reported on Nov. 4.
GIC is estimated by the Sovereign Wealth Fund Institute to manage around $320 billion in assets. Real estate accounted for 7 percent of its portfolio in the financial year to April 1, according to its annual report.
(Reporting by Rachel Armstrong; Writing by Denny Thomas; Editing by Stephen Coates)
