Warburg Pincus and Lendlease have jointly acquired a portfolio of industrial assets in Singapore valued at $1.6 billion, marking one of the largest private transactions in the city-state’s industrial real estate sector. The portfolio, previously owned by entities related to Blackstone and Mr. Lim Chap Huat, the executive chairman of Soilbuild, comprises business parks and high-tech industrial facilities with a total gross floor area of 4.5 million square feet.
These assets were part of the Soilbuild Business Space REIT, which was privatized in 2021 by Blackstone and Mr. Lim. The portfolio includes properties tenanted by blue-chip companies across key sectors such as life sciences, technology, advanced manufacturing, and logistics.
“This strategic acquisition underscores our commitment to the rapidly expanding life sciences and R&D real estate market in Asia-Pacific,” said Justin Gabbani, CEO of Investment Management at Lendlease. He emphasized that the platform is well-positioned to capitalize on opportunities in these sectors and intends to further scale the business and enhance performance for investment partners.
This acquisition is the first transaction for the newly established joint venture platform between Lendlease and Warburg Pincus, which was launched on July 31. The platform focuses on life sciences and research and development real estate in the Asia-Pacific region.
Takashi Murata, Managing Director and Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, noted, “The portfolio gives us immediate scale in the tightly held Singapore market, cementing our position as one of the top industrial asset owners in Singapore and reiterating our conviction in the life sciences and R&D sector.”
Despite the sale, Blackstone Real Estate announced that it would continue its partnership with Soilbuild Group through investments in other assets within the Soilbuild Business Space REIT. The REIT was privatized in 2021 after facing challenges in expanding its portfolio while maintaining the ability to make accretive acquisitions.
The deal involved Mr. Lim and Blackstone acquiring the holdings of minority investors at a price of 55 cents per unit, which closely aligned with the REIT’s book value.
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