GLP and CPPIB Expand Japan Development Venture to US$2.2 billion
GLP today announced the expansion of GLP Japan Development Venture, its 50:50 joint venture with Canada Pension Plan Investment Board to develop modern logistics properties in Japan.
- GLP and CPPIB each committing an additional JPY29 billion (US$316 million) of equity to bring total Venture size including leverage to US$2.2 billion
- Venture more than doubled on the back of attractive investment pipeline and strong market fundamentals in Japan
- Following expansion of GLP Japan Development Venture, GLP’s fund management platform will grow to US$8.4 billion
Singapore, 4 February 2013 – Global Logistic Properties (“GLP”), one of the world’s leading providers of modern logistics facilities, with a market-leading position in China, Japan and Brazil, today announced the expansion of GLP Japan Development Venture (“Venture”), its 50:50 joint venture with Canada Pension Plan Investment Board (“CPPIB”) to develop modern logistics properties in Japan. Led by an attractive investment pipeline and strong market fundamentals, both CPPIB and GLP have agreed to expand the investment capacity of the Venture and will each contribute an additional JPY29 billion (US$316 million) of equity.
The new equity commitment announced today more than doubles the total equity allocated to GLP Japan Development Venture to JPY100 billion (US$1.1 billion). With leverage, the Venture’s investment target is US$2.2 billion and the investment identification period has been reset for another three years from the signing date.
Jeffrey Schwartz, Co-Founder and Chairman of the Executive Committee of GLP, said: “This agreement is testament to how well GLP Japan Development Venture has performed since its inception 16 months ago. Our investment pipeline is considerably ahead of schedule and we are seeing strong demand for our developments, reflecting attractive fundamentals for modern logistics facilities in Japan.
“Today’s announcement is also an important milestone in the continued growth of GLP’s best-in-class fund management platform, as we continue to leverage our strong relationships with the world’s leading institutional investors. Assets under fund management now stand at US$8.4 billion. We are delighted to build further on our strong partnership with CPPIB and we look forward to working together for continued success.”
GLP Japan Development Venture was formed in August 2011 with an equity commitment of US$500 million and a target loan-to-value of 50%. To-date, the Venture has invested in four development projects totaling JPY43 billion (US$469 million), ahead of the original three-year investment schedule. Three out of four projects have commenced construction, with the first project due for completion in February 2013.
M3 Capital Partners (HK) Limited served as exclusive financial advisor to GLP in connection with the expansion and formation of the GLP Japan Development Venture.
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties (GLP) is one of the world’s leading providers of modern logistics facilities, with a market-leading position in China, Japan and Brazil. It owns, manages and leases out 505 completed properties in 205 logistics parks spread across 60 cities and states in China, Japan and Brazil, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-suit and Sales-and-leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (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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