Blackstone will pay $1.5 billion for GIC’s share in an Australian logistics trust.

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Blackstone (NYSE: BX) Inc announced on Friday that it would pay A$2.1 billion ($1.50 billion) for Singapore wealth fund GIC’s 49 percent share in an Australian logistics trust, as the private-equity firm tries to tap into the country’s fast-growing e-commerce business.

According to Blackstone, the transaction for a share in Dexus Australia Logistics Trust (DALT) will be the company’s largest investment in Asia under its Core+ Real Estate strategy. The rest of the joint venture will be owned by Dexus.

Dexus said in a separate statement that about 90% of DALT’s portfolio is exposed to Sydney and Melbourne and is weighted toward traditional logistics facilities, which are a fundamental pillar of growth for the e- commerce sector.

The DALT transaction also gives Blackstone access to densely populated areas and important transportation hubs, aligning with the company’s strategy of “overweighting high conviction sectors and geographies,” according to Blackstone.

Blackstone bought a self-storage property in Melbourne and an office tower in Sydney’s central business district earlier this year.

Story by : Norvisi Mawunyegah