GLP Sells Three Japan Properties to GLP J-REIT; Continues to Grow Fund Management Platform
GLP will sell three of its properties to GLP J-REIT for approximately JPY12.6 billion (US$142 million). The consideration is in line with the appraised value of the assets.
- US$142 million sale follows GLP J-REIT’s execution of purchase option
- GLP retains a 15 percent interest in GLP J-REIT after underwriters fully exercise over-allotment option
- Following the sale, GLP’s fund management platform will grow to US$7.1 bn1
Singapore, 17 January 2013 – Global Logistic Properties Limited (“GLP”), one of the world’s leading providers of modern logistics facilities, with a market-leading position in China, Japan and Brazil, today announced that it will sell three of its properties to GLP J-REIT for approximately JPY12.6 billion (US$142 million). The consideration is in line with the appraised value of the assets2.
GLP had granted purchase options to GLP J-REIT to acquire three logistics properties in Japan in November 2012. Following the underwriters’ exercise of the over-allotment option, GLP J-REIT will use the arising net proceeds of JPY5.1 billion (US$58 million) to acquire these assets. The transaction is expected to be completed on 1 February 2013.
Jeffrey Schwartz, Co-Founder of GLP and Chairman of the Executive Committee, said: "This is another milestone for both GLP and GLP J-REIT, building on the successful listing of the J-REIT on Tokyo Stock Exchange. This transaction is consistent with our stated strategies to recycle capital and grow our fund management business. Our retained interest of 15 percent in GLP J-REIT makes us well-positioned to benefit from the highly attractive market dynamics in Japan.”
Masato Miki, President and CEO of GLP Japan Advisors, asset manager of GLP J-REIT, said: “We are delighted to announce the purchase of these three additional properties from GLP. These are all modern, high-quality assets, in attractive locations, and this transaction further consolidates our position as the largest logistics REIT in Japan. We look forward to leveraging the strong support from GLP to grow our property portfolio to maximise value for our investors.”
GLP has also granted GLP J-REIT a “right of first look” over its remaining 35 wholly owned properties. Following closing of the over-allotment option, GLP’s unitholding interest in GLP J-REIT is expected to decrease to approximately 15 percent, from 15.75 percent.
Appendix
The three properties under the Optional Sale agreement are as follows:
|
Property name |
Location |
Sale price (JPY million) |
Sale price (US$ million) |
|
GLP Tatsumi |
Koto,Tokyo |
4,960 |
56.1 |
|
GLP Sakai |
Sakai, Osaka |
2,000 |
22.6 |
|
GLP Sendai |
Sendai, Miyagi |
5,620 |
63.6 |
|
Total: |
12,580 |
142.3 |
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties (GLP) is one of the world’s leading providers of modern logistics facilities, with a market-leading position in China, Japan and Brazil. It owns, manages and leases out 505 completed properties in 205 logistics parks spread across 60 cities and states in China, Japan and Brazil, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-suit and Sales-and-leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP)
About GLP J-REIT (www.glpjreit.com)
GLP J-REIT is Japan’s largest logistics real estate investment trust. It owns, manages and leases out 30 modern logistics facilities in Japan, the majority of which are located in Tokyo and Osaka. Global Logistic Properties is the sole sponsor of GLP J-REIT, acting as both property and asset manager. GLP J-REIT listed on the Tokyo Stock Exchange on December 21, 2012 (TSE stock code: 3281; Reuters ticker: 3281.T; Bloomberg ticker: 3281:JP)
Issued by: Global Logistic Properties Limited
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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DISCLAIMER:
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 = JPY88.4, the closing exchange rate as of 16 January2013
2As of 31 August 2012
