GLP To Acquire US$1.4 Billion Portfolio in Brazil from BR Properties

GLP To Acquire US$1.4 Billion Portfolio in Brazil from BR Properties

GLP has entered into a conditional agreement to acquire a portfolio of 34 assets in Brazil from BR Properties for BRL3.18 billion (US$1.36 billion), or a 9.4% yield.

  • GLP to acquire a portfolio of 34 assets from BR Properties, the second largest modern logistics provider in Brazil, for US$1.4 billion
  • Transaction expected to be immediately accretive
  • GLP to fund acquisition without issuing additional equity
  • Strengthens GLP’s market-leading position in Brazil, one of the world’s best markets for logistics

 

Singapore, 6 March 2014 – Global Logistic Properties Limited (“GLP”), the leading provider of modern logistics facilities in China, Japan and Brazil, has entered into a conditional agreement to acquire a portfolio of 34 assets in Brazil from BR Properties S.A. (“BR Properties”) for BRL 3.18 billion (US$1.36 billion ), or a 9.4% yield.
 

Jeffrey H. Schwartz, Co-Founder and Chairman of the Executive Committee of GLP, said: “Our strong balance sheet and prudent financial discipline have allowed us to react quickly on this strategic opportunity, which will be immediately accretive to GLP. BR Properties’ portfolio of high-quality, strategically-located logistics assets complements our existing portfolio well and will further strengthen our market leadership position in Brazil, where we feel very good about the long-term prospects.”
 

Mauro Dias, President of GLP Brazil, said: “Brazil remains one of the world’s best markets for logistics. Demand for modern logistics facilities is strong, underpinned by a young, growing consumer market and a continued drive to improve supply chain efficiency. Following this high-quality acquisition, our completed portfolio in Brazil will increase to 2.6 million square meters (“sqm”) (28 million square feet (“sq ft”)). I feel particularly good about the quality and location of the facilities, as well as the strength of the tenancy and the network effect it will create when combined with our existing customer base.”
 

The portfolio comprises 1.2 million sqm (13 million sq ft) of completed logistics assets, with a lease ratio of 99%. More than 86% of the portfolio is located in the primary logistics markets of São Paulo and Rio de Janeiro, which together generate greater than 40% of Brazil’s GDP.
 

This transaction remains subject to due diligence, regulatory and GLP Board approval. GLP intends to fund the acquisition without issuing additional equity. The acquisition is expected to be completed by 31 August 2014.


About Global Logistic Properties (www.glprop.com)
Global Logistic Properties Limited (“GLP”) is the leading provider of modern logistics facilities in China, Japan and Brazil. Our property portfolio of 23.4 million square meters (252 million square feet) is strategically located across 63 cities, forming an efficient logistics network serving more than 700 customers. We are dedicated to improving supply chain infrastructure for the world’s most dynamic manufacturers, retailers and third party logistics companies. Domestic consumption is a key driver of demand for GLP.
 

The Group is listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP).

 


GLP Investor Relations & Media Contact:
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations   
Tel: +65 6643 6372
Email: agoel@glprop.com


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