GLP Japan Development Venture To Sell Greater Osaka Asset to GLP J-­REIT

GLP Japan Development Venture To Sell Greater Osaka Asset to GLP J-­REIT

GLP today announced that GLP Japan Development Venture will sell GLP Kobe­Nishi to GLP J­REIT for approximately JPY7.2 billion (US$60 million). The sale crystallizes a 38% development value creation margin for the Venture within 14 months, with net levered property IRR of 128% before fees and promotes.

  • Sale of development project crystallizes value creation within 14 months; net levered property IRR of 128% before fees and promotes
  • Transaction consistent with GLP’s capital recycling strategy; expected to be completed May 2015

 

Singapore, 24 April 2015 – Global Logistic Properties Limited (“GLP”), the leading global provider of modern logistics facilities, today announced that GLP Japan Development Venture will sell GLP Kobe-Nishi to GLP J-REIT for approximately JPY7.2 billion (US$60 million1). The sale crystallizes a 38% development value creation margin for the Venture within 14 months, with net levered property IRR of 128% before fees and promotes. This highlights the embedded value of GLP’s development pipeline.
 

GLP Kobe-Nishi is a 36,000 square meters (“sqm”) (392,000 square feet (“sq ft”)) property completed in January 2015 and fully leased to Trinet Logistics Co., Ltd. under a long term lease. The property is located in Greater Osaka where there is virtually no vacancy for modern logistics facilities2. The sale price is in line with the property’s latest appraisal value3 as of 31 March 2015 and the transaction4 expected to be completed in May 2015.
 

Mr. Ming Z. Mei, Chief Executive Officer of GLP said, “This transaction is consistent with GLP’s capital recycling strategy aimed at enhancing value for GLP and our partners. It also enables us to continue investing in the growth of our business.”

GLP Kobe-Nishi is a development under GLP Japan Development Venture.
 

GLP J-REIT, listed on the Tokyo Stock Exchange in December 2012, is a real estate investment trust focused on operating logistics properties in Japan. GLP is the property and asset manager and retains a 15% interest in the J-REIT. GLP J-REIT has the right of first look on a further 24 properties (US$2.0 billion) wholly owned by GLP.


About Global Logistic Properties (www.glprop.com)

Global Logistic Properties Limited (“GLP”) is a leading global provider of modern logistics facilities. As of 31 December 2014, GLP’s US$19 billion property portfolio encompasses 29 million square meters (312 million square feet) of logistics facilities across China, Japan and Brazil. In February 2015, GLP established immediate scale in the United States with the acquisition of an US$8.0 billion portfolio.


GLP’s growth strategy is centered on being the best operator, 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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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.

1 Unless stated, all exchange rates are reported as 1 USD = JPY119.69, the closing exchange rate as of 31 March 2015
2Source: CBRE Global Research and Consulting, Japan Industrial & Logistics Market View 2014 Q4
3 These appraisals are commissioned by GLP and were performed on the basis of desktop valuations. The book value and appraisal value of GLP Kobe Nishi as of 31 March 2015 was JPY7.1billion (US$59 million)
4 This transaction falls under the category of “non-discloseable transactions” for the purpose of Chapter 10 of the SGX-ST Listing Manual