GIC to buy Japan logistics assets from Blackstone for $800 mln (updated)
28/04/2023 07:28
(Adds GIC, Blackstone comments)
By Makiko Yamazaki and Ritsuko Shimizu
TOKYO, April 28 (Reuters) - Singapore sovereign wealth
fund GIC said on Friday it would buy a portfolio of six
logistics assets in Japan for more than $800 million from
Blackstone Inc BX.N , reflecting strong appetite for logistics
real estate.
The transaction, comprising 4 million square feet of
warehouses located across Japan, is the largest real estate deal
in Japan this year in terms of value, according to data compiled
by Refinitiv.
"It is a good addition to our Japan portfolio as we continue
to focus in tailwind sectors such as hospitality and logistics,"
Goh Chin Kiong, deputy chief investment officer for GIC's real
estate business, said in a statement.
GIC, an investor in Japan for over three decades, has
recently notched up its deal activity as the country's interest
rates remain low. Last year, it bought hotel and leisure assets
from Japanese railway and hotel conglomerate Seibu Holdings
9024.T .
While the real estate market globally has come under
pressure due to soaring borrowing costs, the logistics segment
remains relatively unscathed.
"Blackstone has reshuffled its (real estate) portfolio
over the decade," shifting its focus to logistics, data centres
and hotels away from traditional assets like offices, said
Daisuke Kitta, the head of Blackstone's real estate business in
Japan.
"We've secured solid returns through the latest deal
despite the real estate market downturn. It shows that it's
important to be selective about assets," he told Reuters.
Blackstone is selling the logistics assets it bought
about two years ago from Daiwa House Industry Co 1925.T . Net
operating income for the assets, a key gauge for profitability,
has risen 35% under its management, Blackstone said.
The U.S. firm said this month it had raised $30.4
billion for its latest global real estate fund as it looks to
double down on the industry. It currently has $332 billion of
investor capital under management. urn:newsml:reuters.com:*:nL4N36E2Q3
(Reporting by Makiko Yamazaki and Ritsuko Shimizu in Tokyo,
Yantoultra Ngui in Singapore; Editing by Jacqueline Wong and
Raju Gopalakrishnan)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))