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Blackstone to sell IndCor Properties to Singapore’s GIC for $8.1 billion

December 2, 2014, 12:29 PM UTC
Blackstone Group CEO Stephen Schwarzman and CFO Laurence Tosi Attend Opening of Singapore Office
The logo for Blackstone Group LP is displayed during the opening of the company's new office in Singapore, on Monday, Oct. 21, 2013. Blackstone, the world's biggest manager of alternative assets such as private equity and real estate, last week reported that third-quarter profit rose 3 percent as gains in property holdings offset a decline in its buyout unit. Photographer: Munshi Ahmed/Bloomberg via Getty Images
Photograph by Munshi Ahmed — Bloomberg via Getty Images

Blackstone Group LP said it would sell its U.S. industrial platform IndCor Properties to affiliates of Singapore sovereign wealth fund GIC Pte Ltd for $8.1 billion.

As a result of the deal, IndCor will no longer pursue an initial public offering filed in September, Blackstone said in a statement.

Reuters reported in November that GIC was leading a consortium to buy IndCor from Blackstone in a deal valued at about $8 billion including debt.

Chicago-based 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 its website.

GIC 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.

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.

The deal is expected to close in the first quarter of 2015. Eastdil Secured, a unit of Wells Fargo & Co, Citigroup, Barclays and RBC Capital Markets acted as advisers to Blackstone.