Global Industrial Company and Realty Income Corporation have entered into a $1.5 billion joint venture that will develop build‑to‑suit logistics real‑estate assets across the United States. The partnership pools capital from both firms and focuses on long‑term net‑lease tenants with investment‑grade credit profiles, positioning the joint venture to capture the growing demand for modern, high‑quality distribution centers.
In addition to the U.S. program, the two companies will finance a $200 million build‑to‑suit industrial portfolio in Mexico. The portfolio, developed in partnership with Hines, will be pre‑leased to several Fortune 100 companies and sold to Realty Income upon completion, marking Realty Income’s first investment in Mexico and expanding GIC’s exposure to the Latin‑American logistics market.
The joint venture aligns with GIC’s strategy to diversify its real‑estate holdings and leverage its expertise in industrial distribution. For Realty Income, the deal expands its logistics portfolio and provides a foothold in a high‑growth market, while GIC gains access to a proven net‑lease operator and a pipeline of high‑quality tenants. Together, the partners aim to generate predictable cash flow and higher effective returns through a disciplined development model.
U.S. logistics vacancy rates have stabilized around 7.5%, and demand for modern, energy‑efficient facilities remains strong, supporting the joint venture’s focus on build‑to‑suit projects. Mexico’s logistics market is experiencing nearshoring‑driven growth, with vacancy rates near 1% and rent growth outpacing the broader economy. The pre‑leased Mexican portfolio reflects this tailwind and provides a low‑risk, high‑credit‑quality asset for the partnership.
Sumit Roy, President and CEO of Realty Income, said the partnership “amplifies our strengths in sourcing, underwriting, and asset management, unlocking growth opportunities at higher effective returns.” Cai Wenzheng, Head of Americas Real Estate at GIC, added that the deal “provides direct access to the logistics investment‑grade segment where growth is expected.” Goh Chin Kiong, GIC’s Chief Investment Officer of Real Estate, noted that the partnership “unlocks significant value through investments in mission‑critical, state‑of‑the‑art build‑to‑suit logistics assets.”
Investors viewed the announcement as a strategic, long‑term development rather than an immediate catalyst for significant price movement, resulting in a muted market reaction. The partnership’s focus on predictable cash flow and high‑credit tenants aligns with Realty Income’s core investment thesis, while GIC’s capital deployment supports its broader real‑estate diversification strategy.
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