GLP Announces New Investors Into GLP US Income Partners I
GLP today announced the introduction of three capital partners into GLP US Income Partners I. They include two leading global institutional investors from Asia and one from North America. One of the Asian investors is new to GLP’s fund management platform.
- GLP is in contract to sell down stake to 10% in US$8 billion logistics portfolio
- Stake syndicated to three leading global institutional investors, including two from Asia and one from North America
- GLP remains the sole asset manager
- GLP’s fund management platform has grown at 97% CAGR over the past four years to US$20 billion today
Chicago, 28 May 2015 – Global Logistic Properties Limited (“GLP”), the leading global provider of modern logistics facilities, today announced the introduction of three capital partners into GLP US Income Partners I. They include two leading global institutional investors from Asia and one from North America. One of the Asian investors is new to GLP’s fund management platform. GLP will reduce its stake in GLP US Income Partners I from 55% to 10% and remains the sole asset manager. GIC continues to hold a 45% stake in the portfolio.
In December 2014, GLP entered into an agreement to acquire one of the largest logistics platforms in the United States, with the stated intention of injecting the US$8 billion portfolio into its fund management platform.
The agreed sale price of the 45% syndicated interest is consistent with the price GLP paid plus retained earnings. The fund syndication is expected to close 2Q FY2016 (July – September 2015), upon the receipt of regulatory approval, including approval by the Committee on Foreign Investment in the United States (“CFIUS”). Upon closing, GLP expects to book a net divestment gain equivalent to the net income earned during the period held for sale.
Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: “We are delighted to welcome the new capital partners into GLP US Income Partners I. The offering was oversubscribed with significant investor interest. This draws on our longstanding relationships with leading institutions and strong management capabilities. The fund management platform is one of GLP’s main sources of capital to fund growth. We remain focused on further expanding our fund management platform and driving higher risk-adjusted returns.”
GLP US Income Partners I comprises 115 million square feet (11 million square meters) of high quality logistics properties. The portfolio is concentrated in locations with higher barriers to entry, with 26 of 29 key markets with populations of one million or greater, ideal for last mile e-commerce deliveries. As of 31 March 2015, the portfolio was 92% leased, with the ability to further increase to 94% within the next year.
This transaction is in line with GLP’s growth strategy of expanding into the best logistics markets internationally via its fund management platform, which has grown at a compound annual growth rate of 97% to US$20 billion of assets under management today.
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties Limited (“GLP”) is a leading global provider of modern logistics facilities. As of 31 March 2015, GLP’s US$28 billion property portfolio encompasses 41 million square meters (441 million square feet) of logistics facilities across China, Japan, Brazil and the United States.
GLP remains focused on being the best operator in each of its markets, creating value through developments and expanding its fund management platform. GLP’s customers include some of 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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