Singapore: GLP to sell four Japanese logistics properties in $420m deal

Visual from company website.

Global Logistics Properties (GLP), a global provider of modern logistics facilities, will sell four properties in Japan to GLP J-REIT for JPY42.7 billion ($420 million). The sale price is 3 per cent higher than the latest appraisal values and equates to a weighted average cap rate of 4.8 per cent.

GLP, which is an owner-operator, fund manager and developer of logistics facilities, recently sold its 50 per cent share of GLP MFLP Ichikawa Shiohama to GLP J-REIT.

GLP J-REIT, listed on the Tokyo Stock Exchange since 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 17 properties ($2 billion) wholly owned by GLP.

On the basis of presentations filed with the Singapore bourse, Japanese asset sales year-to-date for the company amount to $572 million, with a cash profit of $130 million, a net IRR of 45 per cent and a development profit margin of 44 per cent.

In a media release, GLP stated that it expects to realise $130 million of cash profit from these dispositions upon completion in September 2016. This includes the crystallisation of $100 million of development profit (GLP share, pre-tax) from three development projects – GLP Atsugi II, GLP Yoshimi and GLP MFLP Ichikawa Shiohama – which are fully leased and generated a development profit margin of 44 per cent.

Also Read: SG Realty: Isetan & CapitaLand divest assets; GLP leases out logistics space in US

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Ming Z. Mei, chief executive of GLP, said, “This transaction demonstrates how GLP is able to leverage its fund management platform to unlock value and generate the best possible returns. Looking ahead, we will continue our capital recycling strategy to achieve dual aims of crystallizing development profit and growing fund management AUM to generate higher recurring income from management fees.”

The dispositions of these five assets generated a net levered property IRR of 27 per cent (before fees and promotes). Net sale proceeds for GLP are estimated to be approximately JPY26 billion ($254 million), which GLP plans to reinvest into development in Japan.

For GLP, China and Japan continue to represent the most attractive markets for development, with the firm intending to deploy the majority of its capital to these two markets while focusing on being the best operator.

Also Read: SG Realty: CapitaLand, QIA buy Melbourne property; GLP China issues 1st bond tranche

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.