Centerbridge Partners and GIC to Take Indus Realty Private for $868M

The deal is expected to close this summer.

Indus Realty Trust announced in a press release that it would be acquired by Centerbridge partners and GIC Real Estate. An all-cash transaction in which the latter two companies acquired all outstanding shares of the former will be valued at an estimated $868 million.

Indus shareholders receive $67.00 per share in cash, a premium of 17% to the company’s unaffected stock price on November 25, 2022. That was the date and Centerbridge and GIC first publicly declared their intent to buy the company.

On that date, the offer was for $600 million, as MarketWatch reported at the time. Centerbridge had already owned a roughly 14.8% share in Indus and GIC Real Estate, a specialized investment arm of Singapore’s sovereign wealth fund, had offered $65 per share. Back then, an Indus press release read in part, “Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the Company’s Board of Directors will carefully review the proposal to determine the best path forward for the Company that maximizes value for all of the Company’s shareholders.”

Indus focuses on industrial and logistics properties. In December 2022, it sold its office/flex portfolio for $11 million. The company then owned “INDUS owns 42 industrial/logistics buildings aggregating approximately 6.1 million square feet in Connecticut, Pennsylvania, North Carolina, South Carolina, and Florida.

“After conducting an extensive process to explore the Company’s strategic alternatives, we are pleased to have reached an agreement with Centerbridge and GIC. The transaction delivers immediate and significant value to our stockholders, and we believe it validates the quality of the platform and portfolio we have built over INDUS’ long history,” said Michael Gamzon, Indus president and CEO. “I would like to extend my thanks to the entire Board and management team for their hard work during this process, and for their unwavering commitment to act in the best interests of our stockholders.”

Indus will be able to pay its regular first and second quarter dividends. BofA Securities Inc. and J.P. Morgan Securities LLC are serving as financial advisors to Centerbridge and GIC. Simpson Thacher & Bartlett LLP is serving as legal counsel to Centerbridge and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to GIC.