Global Logistic Properties (GLP) has sold logistics assets and solar panels worth $278 million (JPY30.5 billion) to its Tokyo stock exchange listed Japanese real estate investment trust (J-REIT).
In an announcement on Monday, the logistics giant said that its 2011-established Japan Development Venture I (GLP JDV I) will sell the two assets GLP Soja I and GLP Soja II located in Greater Osaka to GLP J-REIT for $233 million (JPY25.5 billion). Further, GLP will sell $45 million (JPY5 billion) of solar panels which are installed on the roof of 13 GLP J-REIT properties, it added.
The two logistics properties comprise total gross floor area of 156,000 square meters and were completed in February 2013 and October 2015 respectively and are currently 95 per cent leased. GLP, the asset manager owns a 50 per cent stake in GLP JDV I.
The seller, GLP JDV I, is a joint venture between GLP and Canada Pension Plan Investment Board (CPPIB). It focuses on building modern, large-scale logistics facilities in the Greater Tokyo and Greater Osaka regions in Japan.
“The sale of these assets creates considerable value for GLP and our partners. Fund management is an important and growing part of our business and we are committed to expanding this platform further through further capital recycling to J-REIT and establishing new funds,” said Yoshiyuki Chosa, President of GLP Japan.
The transaction is expected to be completed in March 2018, the statement said.
The capital recycling comes soon after GLP de-listed from the Singapore stock exchange after a privatisation deal led by Nesta Investment Holdings, the vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.
The $11.6-billion buyout and privatisation that was completed earlier this year is considered to be the largest ever private equity acquisition of an Asian company. GLP, one of the largest real estate private equity managers in the world, has $43 billion of assets under management.