For the Blackstone Group, the $8.1-billion sale of 117 million square feet of US industrial to GIC Pte. Ltd. marks the logical culmination of a process that began when the asset management giant began buying such properties near the bottom of the market four years ago. Blackstone had prepared earlier this year for an initial public offering as another possible way of exiting its IndCor industrial platform; Savills Studley’s Borja Sierra tells GlobeSt.com the reasons it ultimately chose not to take that path boil down to one simple consideration.
“It was to maximize value,” says Sierra, head of US capital markets with Savills Studley. The reasons a private sale offered better pricing than going to the public markets, and therefore meant greater returns to Blackstone’s investors, he says, “are probably related to the timing and cost of putting together an IPO, and to the fact that the current multiples of REITs in this type of product are still affected” by the lack of appeal industrial held among most investors for some time after the downturn. “Their focus was elsewhere, on core income opportunities.”IndCor Deal Typifies Blackstone’s Foresight
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