GLP to Commence Development of Large-scale Logistics Facility in Greater Tokyo
GLP will commence development of GLP Zama, a new multi-tenant logistics facility in Greater Tokyo. GLP Zama will be constructed on the site of a former automobile factory, originally acquired as part of a property portfolio in December 2011.
- GLP Zama to be redeveloped into a 130,000 sqm (1.4 million sq ft) multi-tenant logistics facility
- This is the sixth project under GLP Japan Development Venture, which has now committed a total of JPY79.6 billion (US$802 million)
- Project will be completed in July 2015
Singapore, 4 September 2013 - Global Logistic Properties Limited (“GLP”), the largest provider of modern logistics facilities in China, Japan and Brazil, will commence development of GLP Zama, a new multi-tenant logistics facility in Greater Tokyo.
GLP Zama will be constructed on the site of a former automobile factory, originally acquired as part of a property portfolio in December 2011. The existing single-story building of 35,000 square meters (“sqm”) (376,000 square feet (“sq ft”)) has commenced demolition works and will be redeveloped into a five-story, modern logistics facility with an expected gross floor area of 130,000 sqm (1.4 million sq ft). The project is expected to be completed in July 2015, with the total development cost estimated to be JPY20.9 billion (US$210 million ).
GLP Zama is the sixth development under the GLP Japan Development Venture (“Venture”), a 50/50 joint venture between GLP and Canada Pension Plan Investment Board that was formed in August 2011. To date, the Venture has committed a total investment of JPY79.6 billion (US$802 million).
Yoshiyuki Chosa, President of GLP Japan, said, "This exciting new project in Greater Tokyo is strategically located in the submarket of Zama, a thriving logistics hub that is home to a number of multi-national corporations and third-party logistics providers. Despite a high level of demand in the area, the supply of modern facilities is scarce and attractive land parcels hard to come by. The uniquely positioned site at GLP Zama will be completely redeveloped as a large-scale facility with state-of-the-art, innovative features, providing our customers with the perfect solution in the region.”
The project is GLP’s seventh facility to be located in Kanagawa prefecture, a major distribution market in Greater Tokyo. GLP’s four existing properties in the area have a lease ratio of over 99%, while GLP Atsugi and GLP Ayase, also under the GLP Japan Development Venture, are under development.
GLP Zama will be designed to the highest standards of safety and innovation. The facility will offer best-in-class functionality and advanced features such as a seismic isolation structure to ensure customers’ business continuity.
Appendix
Name of Facility: GLP Zama
Location: Zama City, Kanagawa Prefecture, Greater Tokyo
Total site area: 61,000 sqm (656,000 sq ft)
Total floor area (GFA): 130,000 sqm (1.4 million sq ft)
Net lettable area (NLA): 110,000 sqm (1.2 million sq ft)
Commencement of construction: Demolition in August 2013
Completion of construction: July 2015 (planned)
- Planned development site
GLP Zama is situated in the Greater Tokyo region, providing strong accessibility to the Yokohama port, central Tokyo and Tokyo bay area. It is strategically located near the major national road route 246 and the “Yokohama Machida Interchange” of Tomei Expressway which connects Tokyo with Western Japan. It is also situated in a residential area, facilitating employee recruitment for customers at the facility.
- Characteristics of the facility
GLP Zama will be a modern, multi-tenant logistics facility consisting of five floors above ground, with double rampways allowing truck access to every floor.
- Securing business continuity at all times
GLP Japan places the utmost priority on adopting advanced business continuity measures in its facility planning and management. GLP Zama will provide features such as a seismic isolation structure to ensure safety and security and provide business continuity to customers at all times. The facility will also play an important role in restoration and rehabilitation of the area in the event of a disaster.
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties Limited (“GLP”) is the largest provider of modern logistics facilities in China, Japan and Brazil. Our property portfolio of 21.4 million square meters (226 million square feet) is strategically located across 66 cities, forming an efficient logistics network serving 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).
About Canada Pension Plan Investment Board (www.cppib.com)
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2013, the CPP Fund totalled C$188.9 billion, of which C$20.9 billion represents real estate investments. For more information about CPPIB, please visit www.cppib.com.
GLP Investor Relations & Media Contact:
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations
Tel: +65 6643 6372
Email: agoel@glprop.com
## END ##
This press release is not an offer of securities for sale or a solicitation of an offer to purchase securities. This release may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements regarding the intent, belief and current expectations of GLP or its officers with respect to various matters. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events and speak only as of the date of this press release. GLP does not undertake to revise forward-looking statements to reflect future events or circumstances. No assurance can be given that future events will occur, that projections will be achieved, or that GLP’s assumptions are correct.
