GLP To Sell Nine Additional Assets to GLP J-REIT; Fund Management Platform Grows to US$11.9bn

GLP will sell nine wholly-owned properties in Japan to GLP J-REIT. The sale price of JPY53.8 billion (US$529 million) is in line with the properties’ fair market value as of 30 June 2014. The properties comprise a total gross floor area of 237,000 sqm (2.5 million sq ft).

• GLP Plans to sell nine wholly-owned properties in Japan to GLP J-REIT for approximately US$529 million
• Fund management platform grows to US$11.9 billion
• Transaction is consistent with GLP’s capital recycling strategy

Singapore, 11 August 2014- Global Logistic Properties Limited (“GLP”), the leading provider of modern logistics facilities in China, Japan and Brazil, will sell nine wholly-owned properties in Japan to GLP J-REIT. The sale price of JPY53.8 billion (US$529 million¹) is in line with the properties’ fair market value²as of 30 June 2014. The properties comprise a total gross floor area of 237,000 square meters (“sqm”) (2.5 million square feet (“sq ft’)).

 

GLP plans to recycle the sales proceeds to retain its 15% stake in the J-REIT and in development in China, Japan and Brazil. Following this transaction³, GLP’s fund management platform will grow to US$11.9 billion. The transaction is expected to be completed in September 2014.

 

Mr. Jeffrey H. Schwartz, Chairman of GLP’s Executive Committee, said: “This transaction is consistent with GLP’s capital recycling strategy aimed at enhancing shareholder value and growing our fund management platform. We are committed to growing and accelerating developments in China, Japan and Brazil.”

 

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 of the J-REIT. GLP J-REIT has the right of first look on a further 24 properties (US$2.3 billion) wholly owned by GLP.

 

APPENDIX

	Property  Name	Location	GFA (sqm)	GFA (sq ft)	Sale price (JPY mil)	Sale price (US$ mil)
1	GLP Tokyo II	Tokyo	103,000	1,109,000	36,100	354.7
2	GLP Hiroshima	Hiroshima	23,000	248,000	3,740	36.7
3	GLP Fukusaki	Greater Osaka	26,000	285,000	3,640	35.8
4	GLP Kadoma	Osaka	14,000	147,000	2,430	23.9
5	GLP Okegawa	Greater Tokyo	18,000	189,000	2,420	23.8
6	GLP Fukuoka	Fukuoka	16,000	172,000	1,520	14.9
7	GLP Seishin	Greater Osaka	9,000	101,000	1,470	14.4
8	GLP Ogimachi	Sendai	14,000	151,000	1,460	14.3
9	GLP Chikushino	Greater Fukuoka	14,000	146,000	1,050	10.3
	Total		237,000	2,548,000	53,830	528.9

About Global Logistic Properties (staging.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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This press release is not an offer of securities for sale or a solicitation of an offer to purchase securities. In particular, this press release is not an offer to sell or a solicitation of any offer to buy the securities of the J-REIT in the United States or elsewhere. Investment units may not be offered or sold in the United States without registration or an exemption from registration under the United States Securities Act of 1933 (the “Securities Act”). Any public offering of investment units to be made in the United States will be made by means of an English language prospectus prepared in accordance with the Securities Act that may be obtained from the J-REIT and that will contain detailed information about the J-REIT and its management, as well as the J-REIT’s financial statements. However, the J-REIT will not undertake a public offering and sale of investment units in the United States, and the investment units have not been and will not be registered under the Securities Act.

The information in this press release may not contain, and you may not rely on this press release as providing, all material information concerning the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of GLP or its subsidiaries. Please refer to our unaudited financial statements for a complete report of our financial performance and position. 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," “intends,” “foresees,” “estimates,” “projects,” and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Similarly, statements that describe objectives, plans or goals also are 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.

 

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¹ Unless stated, all exchange rates are reported as 1 USD = JPY101.78, the closing exchange rate as of 8 August 2014

² These appraisals by CBRE were commissioned by GLP.The book value and appraisal value of the assets at 30 June 2014 was JPY53.8 billion (US$529 million)

³ This transaction falls under the category of “non-discloseable transactions” for the purpose of Chapter 10 of the SGX-ST Listing Manual