GLP Expands Japan Development Venture By 29% 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.
- Following the expansion, the Venture has US$800 million of capital to invest
- GLP to commence development of GLP Soja II, a 78,000 sqm (840,000 sq ft) multi-tenant logistics facility in Western Japan
- GLP's fund management platform grows to US$13.2 billion
Singapore, 29 October 2014 – Global Logistic Properties Limited (“GLP”), the largest provider of modern logistics facilities 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. Each partner will contribute an additional JPY15 billion (US$138 million1) of equity to bring the total Venture size to US$2.2 billion2 when fully leveraged and invested. The investment identification period has been reset for a further three years.
GLP Japan Development Venture was established in September 2011 and first expanded in February 2013. The Venture has committed to projects in various stages of development with current value of US$1.4 billion. Following this announcement, the Venture has an investment capacity of US$800 million and GLP’s global fund management platform grows to US$13.2 billion of assets under management.
Yoshiyuki Chosa, President of GLP Japan, said: “We are pleased to further grow our fund management platform and strengthen our long-term partnership with CPPIB. GLP Japan Development Venture has consistently outperformed over the past three years with leasing progressing ahead of schedule and achieved rents higher than budgeted. With a strong balance sheet in place, we will continue to be disciplined and selective in pursuing strategic opportunities to drive returns for our shareholders.”
In 2Q FY2015, GLP commenced development of GLP Soja II, a 78,000 square meter (“sqm”) (840,000 square feet (“sq ft”)) multi-tenant logistics facility in Okayama prefecture, Western Japan. The total development cost is estimated to be JPY9.6 billion (US$88 million).
Rendering of GLP Soja II
Appendix
Name of Facility: GLP Soja II
Location: Soja City, Okayama Prefecture, Western Japan
Total site area: Approx. 33,000 sqm (355,000 sq ft)
Total floor area: Approx. 78,000 sqm (840,000 sq ft)
Leasable area: Approx. 63,000 sqm (678,000 sq ft)
Commencement of construction: 2Q FY2015
Completion of construction: 3Q FY2016 (planned)
1 Unless stated, all exchange rates are reported as 1 USD = JPY108.98, the closing exchange rate as of 30 September 2014
2 Based on cost for in-progress developments and latest appraised values for completed assets
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties Limited (“GLP”) is the leading provider of modern logistics facilities in China, Japan and Brazil. Our property portfolio of 27 million square meters (290 million square feet) is strategically located across 76 cities, forming an efficient logistics network serving almost 800 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).
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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