GLP to Sell Two Japan Properties to GLP J-REIT; Continues to Grow Fund Management Platform
GLP will sell two wholly-owned properties in Japan to GLP J-REIT. The properties comprise a total GFA of 126,000 sqm (1.4 million sq ft) and the sale price of JPY28.5 billion (US$287 million) represents a 1% premium to the properties’ newly appraised value as of 30 June 2013.
- GLP plans to sell two wholly-owned properties in Japan to GLP J-REIT for US$287 million
- Transaction expected to be completed in March 2014
- Unlocks value and grows GLP’s fund management platform to US$8.4 billion
Singapore, 3 September 2013– Global Logistic Properties Limited (“GLP”), the largest provider of modern logistics facilities in China, Japan and Brazil, will sell two wholly-owned properties in Japan to GLP J-REIT. The properties comprise a total gross floor area of 126,000 square meters (“sqm”) (1.4 million square feet (“sq ft”)) and the sale price of JPY28.5 billion (US$287*1) represents a 1% premium to the properties’ newly appraised value*2 as of 30 June 2013. This transaction*3 is subject to completion, which is targeted to take place in March 2014.
Net cash proceeds from the sale are estimated to be approximately JPY13.6 billion (US$137 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.
Jeffrey Schwartz, Co-Founder of GLP and Chairman of the Executive Committee, said:“We are delighted to announce this transaction, which unlocks value while enabling us to expand our fund management platform. Japan remains an important market for GLP and we will continue to focus on accelerating our development activities to position us for the future.”
This transaction follows the sale of seven assets from GLP Japan Income Partners I to GLP J-REIT, also announced today, which is expected to be completed in October 2013. These sales are consistent with GLP’s strategy to recycle capital in order to enhance shareholder value and to grow its fund management platform. Following this transaction, GLP’s fund management platform will grow to US$8.4 billion.
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.
*1 Unless stated, all exchange rates are reported as 1 USD = JPY99.3, the closing exchange rate as of 2 September 2013
*2 These 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 JPY28.2 billion (US$284 million)
*3 This transaction falls under the category of “non-discloseable transactions” for the purposes of Chapter 10 of the SGX-ST Listing Manual
APPENDIX
| Property name | Location | PGFA (sqm) |
GFA (sq ft) |
Sale price (JPY mil) |
Sale price (US$ mil) |
Date of Sale |
GLP Ownership (%) | |
| 1 | GLP Urayasu III | Greater Tokyo | 69,000 | 743,000 | 18,200 | 183.3 | Mar 2014 | 100.0% |
| 2 | GLP Komaki | Nagoya | 57,000 | 614,000 | 10,300 | 103.7 | Mar 2014 | 100.0% |
| Total | 126,000 | 1,356,000 | 28,500 | 287.0 | Mar 2014 | 100.0% |
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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