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PAYDAY: Singapore Sovereign Wealth Fund Loves Logistics




Update – December 8th

It was originally reported that GIC Private Limited was the sole investor in IndCor Properties and that Global Properties Logistics denied involvement. We can now confirm that Global Properties Logistics is the lead investor.

There were reports that Global Logistic Properties Limited (GLP) was participating on the deal. On December 8th, Global Logistic Properties has confirmed they are co-investing with the GIC to acquire IndCor Properties for US$ 8.1 billion. GLP plans to complete the deal by the first quarter of 2015 and will hold an initial stake of 55% using GLP US Income Partners I. GLP plans to reduce this stake to 10% by August 2015 to resell it to capital partners. Singapore’s GIC will invest in the remaining 45% of IndCor Properties.

In the December 8th press release, Mr. Ming Z. Mei, Co-Founder and Chief Executive Officer of GLP, said: “This transaction gives us immediate scale as well as the best team in the US logistics market. The local management team is very experienced and we expect significant synergies given that we have worked with and alongside more than half of them previously. Investor interest for GLP US Income Partners I is strong and we remain confident of completing the fund syndication by August 2015.”


Ecstatically, New York-based Blackstone Group announced a groundbreaking sale in a press release, beating out other involved parties to the punch. Funds affiliated with Blackstone Real Estate Partners VI & VII sold off their blank-check industrial portfolio company, Chicago-based IndCor Properties Inc., to a large Singapore sovereign wealth fund. IndCor owns a portfolio of 117 million square feet of industrial properties throughout the United States. E-commerce trends are shaping the logistics sector globally, changing the world of retail. Sovereign wealth funds and pensions are buying into this narrative.

In the Blackstone press release, Tim Beaudin, IndCor Properties CEO, said: “We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company’s future prospects under new long-term ownership with GIC.”

Blackstone nixed the IPO route for IndCor after finding a cash rich buyer, an Asian sovereign wealth fund. Affiliates of GIC Private Limited purchased the company for US$ 3.645 billion, an earth shattering figure for direct sovereign wealth fund transactions. Blackstone had a number of advisors regarding the IndCor sale which include Eastdil Secured, Citigroup, Barclays and RBC Capital Markets.

Unfortunately, the limited partners of Walton Street Capital funds that participated in the CalWest deal suffered major losses.

Blackstone’s Clever Takeover of CalWest

In May 2007, Chicago-based Walton Street Capital, L.L.C. bought CalWest Industrial Holdings LLC, a mega industrial property portfolio, at the peak of the market for an estimated US$ 2.8 billion from a partnership between California Public Employees’ Retirement System (CalPERS) and RREFF, a subsidiary of Deutsche Bank AG. The deal was funded by loan capital from Lehman Brothers, Barclays Capital and Goldman Sachs. Walton Street was founded by Neil Bluhm, and raised billions from U.S. pensions, touting investors such as Ohio Police & Fire Pension Fund, Kentucky Retirement Systems, Teachers Retirement System of Louisiana and Texas Permanent School Fund.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Abu Dhabi Investment Council to Consolidate into Mubadala



UAE President Sheikh Khalifa bin Zayed Al Nahyan issued a groundbreaking law that restructures the Abu Dhabi Investment Council (ADIC) to be under the Mubadala Investment Company group. Under the new law, the Mubadala Investment Company Board of Directors will now become the Board of Directors for the Abu Dhabi Investment Council. Furthermore, ADIC management will continue to run the council. Eissa Mohammed al Suwaidi will continue to lead ADIC as its Chief Executive Officer, and will report to Mubadala Group CEO and Managing Director Khaldoon Khalifa al Mubarak.

In a release, he commented, ADIC becoming part of the Mubadala Group is yet another step in Abu Dhabi’s efforts to accelerate the diversification of the UAE’s economy. With an investment vehicle of significant scale, world-class talent and wide geographical reach, we enhance the country’s competitive position.”

Earlier in 2017, Mubadala Development Company merged with International Petroleum Investment Company (IPIC). This is a trend in Abu Dhabi to create economies of scale within these large state-owned entities.

In 2007, ADIC started operations after it splintered off from the Abu Dhabi Investment Authority (ADIA). A significant portion of ADIC’s holdings include stakes in large financial institutions in the UAE.

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SWFI First Read, March 21, 2018



GIC Lowers Stake in Tesco

On March 19, 2018, Singapore’s GIC Private Limited lowered its stake in Tesco PLC, a supermarket chain, from 3.1% to below 3%.

QuadReal Eyes London Diggs

QuadReal, the re-branded real estate unit of bcIMC, plans to open its first overseas office in London. QuadReal already has offices in Vancouver, Toronto and Calgary.

PGIM Hires Howard Nowell

Howard Nowell was hired by PGIM’s institutional relationship group as a managing director. Nowell is based in London. Nowell will focus on large institutional accounts in the United Kingdom and Europe. Previously, Nowell was a Managing Director focused on U.K. institutional clients at BlackRock.

PGIM is part of U.S.-based Prudential Financial, Inc.

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Franklin Resources to Acquihire Random Forest Capital



Franklin Resources, Inc. acquired San Francisco-based Random Forest Capital, LLC, an investment firm with expertise in data science and non-bank marketplace lending (areas of consumer, residential and commercial credit). Random Forest Capital was formed in 2016 and post-deal will join the Franklin Templeton Fixed Income Group investment team. In April 2017, Random Forest completed its seed round raising US$ 1.75 million from a pool of angel investors. Random Forest is co-founded by Austin D. Trombley, who worked on the data infrastructure and data strategy for online lender Prosper for two years. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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