GLP Japan Income Partners I to Sell Seven Properties to GLP J-REIT
GLP today announced that GLP Japan Income Partners I will sell seven properties to GLP J-REIT for approximately JPY27.5 billion (US$277 million), which is in line with the properties’ newly appraised value as of 30 June 2013. GLP owns a 33.3% stake in GLP Japan Income Partners I.
- GLP Japan Income Partners I will sell seven properties to GLP J-REIT for JPY27.5 billion (US$277 million)
- Sale conducted through auction, transaction subject to completion, targeted to take place in October 2013
- Net levered property IRR of over 46%, before fees and promotes
Singapore, 3 September 2013– Global Logistic Properties Limited (“GLP”), the largest provider of modern logistics facilities in China, Japan and Brazil, today announced that GLP Japan Income Partners I will sell seven properties to GLP J-REIT for approximately JPY27.5 billion (US$277*1 million), which is in line with the properties’ newly appraised value*2 as of 30 June 2013. GLP owns a 33.3% stake in GLP Japan Income Partners I.
The properties have generated a cumulative net levered IRR in excess of 46% for investors in GLP Japan Income Partners I, before management fees and promotes, since they were acquired in February 2012.
Jeffrey Schwartz, Co-Founder of GLP and Chairman of the Executive Committee, said: “The sale of these seven properties creates considerable value for GLP and our partners and enables us to continue investing in the growth of our business. It also further enhances our best-in-class fund management platform.”
The sale was conducted through an auction. The transaction3 is subject to completion, which is targeted to take place in October 2013. Net cash proceeds from the sale are estimated to be approximately JPY9 billion (US$91 million), with GLP’s share at JPY3 billion (US$30 million). GLP plans to hedge the proceeds and intends to reinvest the capital to maintain its 15% interest in the J-REIT as well as developments in China, Japan and Brazil.
Originally part of a portfolio acquired in February 2012, the sale assets are single-tenant facilities under long term leases which have been earmarked for disposition from the time they were acquired. The seven facilities comprise a total gross floor area (“GFA”) of 184,000 square meters (“sqm”) (2 million square feet (“sq ft”)) with a 100% lease ratio and a weighted average lease expiry of 6.4 years.
GLP J-REIT, listed on the Tokyo Stock Exchange in December 2012, is a real estate investment trust focused on owning and operating logistics properties in Japan. GLP is the property and asset manager and intends to retain its 15% interest in the J-REIT.
APPENDIX
| Property name | Location | PGFA (sqm) |
GFA (sq ft) |
Sale price (JPY mil) |
Sale price (US$ mil) |
Date of Sale |
GLP Ownership (%) | |
| 1 | GLP Hamura | Tokyo | 43,000 | 463,000 | 7,660 | 77.1 | Oct 2013 | 33.3% |
| 2 | GLP Sodegaura | Greater Tokyo | 51,000 | 549,000 | 6,150 | 61.9 | Oct 2013 | 33.3% |
| 3 | GLP Kuwana | Greater Nagoya | 20,000 | 215,000 | 3,650 | 36.8 | Oct 2013 | 33.3% |
| 4 | GLP Rokko II | Greater Osaka | 21,000 | 226,000 | 3,430 | 34.5 | Oct 2013 | 33.3% |
| 5 | GLP Funabashi III | Greater Tokyo | 18,000 | 194,000 | 3,050 | 30.7 | Oct 2013 | 33.3% |
| 6 | GLP Hatsukaichi | Greater Hiroshima | 12,000 | 129,000 | 1,980 | 19.9 | Oct 2013 | 33.3% |
| 7 | GLP Ebetsu | Sapporo | 19,000 | 205,000 | 1,580 | 15.9 | Oct 2013 | 33.3% |
| Total | 184,000 | 1,981,000 | 27,500 | 276.9 | Oct 2013 | 33.3% |
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 21.4 million square meters (230 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).
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.
1Unless stated, all exchange rates are reported as 1 USD = JPY99.3, the closing exchange rate as of 2 September 2013
2These appraisals were commissioned by GLP and were performed on the basis of desktop valuations. The book value and appraisal value of the assets as of 30 June 2013 was JPY27.9 billion (US$281 million)
3This transaction falls under the category of “non-discloseable transactions” for the purposes of Chapter 10 of the SGX-ST Listing Manual
