GLP Completes Acquisition of US$4.55 Billion US Logistics Portfolio With Partners
GLP has completed its acquisition of a US$4.55 billion portfolio and established GLP US Income Partners II with China Life and two additional leading global institutional investors.
- GLP to partner with three leading global investors including China Life; GLP will be the asset manager
- Additional investors expected to join GLP US Income Partners II by April 2016
- Fund Management Platform AUM grows 17% to US$32 billion
- 173 million sq ft footprint makes GLP US the 2nd largest logistics property owner and operator in the US
Chicago, 5 November 2015 – GLP, the leading global provider of modern logistics facilities, has completed its acquisition of a US$4.55 billion1portfolio and established GLP US Income Partners II2with China Life and two additional leading global institutional investors. Additional investors are expected to join GLP US Income Partners II by April 2016, with GLP retaining a stake of less than 10%.
Overview of GLP US Income Partners II
Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: “Investor demand to partner with us on this portfolio is strong and we are very pleased to complete this acquisition together with three leading global institutional investors. This transaction is in line with our growth strategy of expanding into the best logistics markets internationally via our Fund Management Platform."
GLP US Income Partners II acquired the US$4.55 billion portfolio from Industrial Income Trust at a 5.6%4cap rate. GLP is the asset manager. The Class-A, state-of-the-art logistics portfolio is one of the highest quality industrial portfolios in the US and encompasses a total leasable area of approximately 57.9 million square feet (“sq ft”) (5.4 million square meters (“sqm”)) across 20 major markets.Given that 97% of the acquired portfolio overlaps with GLP’s existing US platform, GLP expects to see significant synergies which will lead to improved operating performance between the two portfolios and enhanced customer relationships globally.
This transaction enlarges GLP’s US footprint by 50% to 173 million sq ft (16.1 million sqm), with GLP becoming the second largest logistics property owner and operator in the US within a year of market entry. GLP is also the largest provider of modern logistics facilities in China, Japan and Brazil.
M3 Capital Partners (HK) Limited is acting as exclusive financial advisor to GLP in connection with the formation of GLP US Income Partners II.
About GLP (www.glprop.com)
GLP is the leading global provider of modern logistics facilities. The Company develops, owns and manages a 48 million square meters5(521 million square feet) portfolio of logistics facilities across China, Japan, Brazil and USA that cater to domestic consumption. GLP’s 4,000 customers include some of the world’s most dynamic manufacturers, retailers and third party logistics companies. Fund management is an important and growing part of GLP’s business, providing significant capital to support sustainable long-term growth, while enhancing returns on GLP’s invested capital. The Company’s total portfolio assets are valued at US$33 billion5.
GLP 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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1 Subject to transaction costs
2 The relevant investors’ participation in GLP US Income Partners II is subject to customary regulatory approvals in their respective home country and the US (as applicable)
3 Any discrepancy between sum of individual amounts and total is due to rounding
4 Year one cash NOI yield
5 Pro-forma figures based on GLP’s reported financials as of 30 September 2015
