Realty Income Corporation and Singapore’s GIC have formed a partnership to develop and acquire over $1.5bn (€1.28bn) net lease logistics properties across North America.
The pair will commit more than $1.5bn in capital commitments to finance the development and purchase of build-to-suit assets in the US, with Realty Income retaining majority ownership of the purchased properties.
GIC has also become a cornerstone investor in Realty Income’s US core-plus fund as part of the partnership that includes a $200m industrial development project in Mexico, Realty Income’s first investment in the country.
Hines, GIC’s development partner, is overseeing the Mexican industrial portfolio project, which consists of assets located in Mexico City and Guadalajara.
The strength of our relationship with GIC is further reflected in their commitment as a cornerstone investor in our US core-plus open-end fund.”
Goh Chin Kiong, CIO of real estate, GIC, said: “GIC is pleased to establish a strategic partnership with Realty Income, one of the largest and most tenured global players in the triple net lease sector.
“Our long-term capital, paired with Realty Income’s expertise and market access will allow us to unlock significant value through investments in mission critical, state-of-the-art build-to-suit logistics assets.”
Cai Wenzheng, head of Americas, real estate, at GIC said: ”We continue to have high conviction in the net lease sector to generate strong, long-term, predictable cash yields for our portfolio.
“This partnership complements our existing direct exposure to the US net lease space, unlocking direct access to the logistics investment-grade segment of the market where we expect continued growth.”
Sumit Roy, president and CEO of Realty Income, said: ”We believe our ongoing partnership with one of the world’s most respected real estate investors will amplify these strengths and further expand our addressable market of investments, unlocking incremental growth opportunities for Realty Income at higher effective returns than would otherwise be possible.
NYSE-listed Realty Income holds a portfolio of over 15,500 properties in all 50 US states, the UK, and seven other countries in Europe.
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