Singapore GIC Real Estate acquires S$1.9b assets in Japan & China

Singapore GIC Real Estate acquires S$1.9b assets in Japan & China

By Rachel Kelly,

SINGAPORE: The Government of Singapore Investment Corporation’s (GIC) real estate investment arm has acquired all of US firm ProLogis’ property fund interests in Japan and China operations.

GIC Real Estate will pay S$1.9 billion (US$1.3 billion) for the transaction, which is expected to be completed in January 2009.

It said the acquisition consolidates control over its existing portfolio in Japan and provides a platform to expand its logistics property business in China.

Dr Seek Ngee Huat, President of GIC Real Estate, said: “Given the strong relationship we have established with ProLogis over the years, we are confident the transition will be a smooth one.”

To manage the portfolios, GIC Real Estate will establish an equal share joint venture with ProLogis’ former chairman and CEO, Jeffrey Schwartz.

Mr Schwartz will be appointed chairman of the joint venture.

Mr Schwartz said the logistics property businesses in these markets have very good long-term prospects despite the current global economic climate.

“Our immediate priority is to ensure that the individual assets in Japan and China continue to be well managed”, he added.

ProLogis has over US$40 billion worth of real estate under its management and is one of the world’s largest property managers and developer of distribution facilities.

- CNA/yb

Source : Channel NewsAsia - 25 Dec 2008

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