Singapore’s sovereign wealth fund GIC has formed a $1.5bn joint venture with Realty Income, a sale-leaseback specialist, targeting net-lease property portfolios. The deal signals renewed institutional appetite for long-term, stable cash flows from single-tenant commercial real estate.

This partnership follows a broader wave of capital targeting net-lease assets, which offer predictable income with lower management intensity. For GIC, it diversifies its real estate holdings, while Realty Income gains access to a deep-pocketed partner for acquisitions amid a competitive market.

Investors will watch how this capital deployment affects pricing and deal flow in the sector. The joint venture’s success could encourage more large-scale partnerships, reinforcing the net-lease model’s appeal for global funds seeking inflation-hedged, contract-backed returns.