GLP to Commence Development of Large-scale Logistics Facility in Greater Tokyo
GLP will commence development of GLP Ayase, a 68,400 sqm (736,000 sq ft) large-scale, multi-tenant logistics facility in Greater Tokyo. The total development cost is estimated to be JPY9.4 billion (US$110 million).
- LP Ayase, a 68,400 sqm (736,000 sq ft) multi-tenant logistics facility, will begin construction October 2013
- Strategically located in Kanagawa Prefecture, an expanding major logistics hub for Greater Tokyo
- This is the fourth project under GLP Japan Development Venture
Singapore, 31 January 2013 – Global Logistic Properties Limited (“GLP”), one of the world’s leading providers of modern logistics facilities, with a market-leading position in China, Japan and Brazil, today announced that it will commence development of GLP Ayase, a 68,400 square metre (“sqm”) (736,000 square feet (“sq ft”)) large-scale, multi-tenant logistics facility in Greater Tokyo. The total development cost is estimated to be JPY9.4 billion (US$110 million ).
GLP Ayase is the fourth development under GLP Japan Development Venture (“Venture”), a 50/50 joint venture between GLP and the Canada Pension Plan Investment Board (“CPPIB”) that was formed in August 2011. To-date, the Fund has announced four development projects for a total investment of JPY43 billion (US$501 million).
The project is also GLP’s sixth facility to be located in the Kanagawa prefecture, a major distribution market for the Greater Tokyo region. GLP’s four existing properties in the area are over 99% leased while GLP Atsugi, also under GLP Japan Development Venture, is currently under construction and expected to be completed in December 2013.
Yoshiyuki Chosa, President of GLP Japan, said, "We are excited to announce this new project, which is strategically located in a region of growing population and high levels of consumption. We have already seen very high levels of interest in this area, of around 10 times leasable area. As the leading provider of modern logistics facilities in Japan, GLP is ideally-placed to cater to our customers’ needs as they seek to enhance their supply chain efficiency.”
GLP has acquired a plot of land in Ayase City, Greater Tokyo and will lease back the existing asset to the seller until May 2013, when it will be demolished to make way for the new GLP Ayase development which is expected to begin construction in October 2013 and be completed by November 2014.
The project is located 6-km from the Ebina Interchange Exit (Ken-O Expressway) which connects to Tomei Expressway offering convenient access to the large cities of Yokohama and Kawasaki. The extension of the Ken-O Expressway is being planned which will further increase GLP Ayase’s accessibility to Greater Tokyo, as well as Tokai and West Japan. In addition, the planned Ayase Interchange Exit of the Tomei Expressway, which connects Tokyo to Nagoya, will be located just 500 metres away from GLP Ayase.
GLP Ayase will be designed to the highest standards of safety and innovation. The facility will offer best-in-class functionality and advanced features such as back-up power supply and a seismic isolation structure to ensure customers’ business continuity.
Appendix
Overview of the GLP Ayase Development Facility
Name of Facility: GLP Ayase
Location: Kosono 771, Ayase City, Kanagawa Prefecture
Total site area: 30,700 sqm (330,000 sq ft)
Total floor area (GFA): 68,400 sqm (736,000 sq ft)
GFA (floor area ratio 200%): 61,500 sqm (662,000 sq ft)
Net lettable area (NLA): 59,600 sqm (642,000 sq ft)
Commencement of construction: October 2013 (planned)
Completion of construction: November 2014 (planned)
- Planned development site
GLP Ayase is strategically located 6-km east of the Ebina Interchange Exit of the Ken-O Expressway (Metropolitan Intra-city Expressway). The area contains a number of factories and warehouses, as well as residential housing. Plans have been made for an Ayase Interchange Exit for the Tomei Expressway, to be completed in FY2017, only 500 meters away from GLP Ayase. This will further increase the convenience of the site and is expected to result in a broader-area logistics hub that will not only cover access to the cities of Yokohama and Kawasaki, but also provide access throughout Greater Tokyo as well as Tokai and West Japan through the Tomei Expressway.
- Characteristics of the facility
GLP Ayase will be a modern multi-tenant logistics facility consisting of 5 floors above ground with a total floor area of 68,400 sqm (planned) on 30,700 sqm of land.
- Securing business continuity during a disaster
GLP Japan places the utmost priority on adopting advanced business continuity measures in its facility planning and management. The GLP Ayase development will provide the following features to ensure safety and security and provide business continuity to its customers at all times.
- Seismic isolation structure
Introduction of groundwater supply equipment to enable the use of toilets when water and electrical power have been damaged or halted.
Employment of a back-up power supply that makes it possible to use disaster control centers, maintain office lighting and electricity outlets as well as preserve the security functions of the entire building should there be a power failure.
- Environmentally conscious facility planning (Building Lifecycle, CO2 Emissions)
The adoption of a seismically isolated structure built with precast concrete makes it possible to streamline construction work and increase the lifecycle of the building (an ordinary warehouse is serviceable for 50 years, whereas GLP’s Ayase facility will be serviceable for 100 years). This also will lead to a 12% decrease in total emissions during the lifecycle of the building.
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)
About GLP Japan (www.glprop.co.jp)
GLP Japan is the Japanese arm of Global Logistic Properties, one of the world’s largest providers of modern logistics facilities, which manages 83 facilities in 7 cities to cover the major distribution centres of Japan. With a total floor area of approximately 3.6 million sqm, GLP Japan is committed in providing highly functional and sustainable logistic facilities that support the lives of people and the economy as an important infrastructure.
About The Canada Pension Plan Investment Board (www.cppib.ca)
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 September 30, 2012, the CPP Fund totaled C$170.1 billion.
Issued by: Global Logistic Properties Limited
GLP Investor Relations & Media Contact:
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations
Tel: +65 6643 6372
Email: agoel@glprop.com
## END ##
DISCLAIMER:
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.
