Singapore-based warehouse giant GLP on Thursday announced that it has sold five properties in Japan for approximately JPY89.8 billion ($821 million) from GLP Japan Development Venture I as part of its capital recycling strategy, according to an official release.
Tokyo Stock Exchange-listed Japanese real estate investment trust (GLP J-REIT) has obtained a right of first look on the sale assets via a bridge scheme.
Under the bridge scheme, special purpose companies affiliated with Mizuho Securities will hold the assets for an interim period.
The properties comprise 342,000 sq m of modern logistics facilities developed by GLP, including GLP Zama, one of its signature development projects in Greater Tokyo.
“This transaction is consistent with GLP’s capital recycling strategy aimed at enhancing value for GLP and our partners. It also highlights the embedded value of GLP’s development pipeline and how we are able to leverage our fund management platform to unlock value and generate the best possible returns,” said Ming Mei, co-founder and CEO of GLP.
GLP, which has over $50 billion in assets under management, is the property and asset manager of GLP J-REIT, which was listed on the Tokyo Stock Exchange in December 2012.
Recently, GLP set up its third Japan-focused logistics real estate fund – GLP Japan Development Partners III (GLP JDP III) – that is seeking to invest a whopping $5.6 billion (JPY 625 billion).
Earlier, the logistics major sold eight properties worth ¥84.9 billion ($765 million) to its GLP J-REIT as part of its capital recycling strategy.
The properties to be sold include seven GLP wholly-owned properties and one property owned by GLP Japan Development Venture II, a 50:50 joint venture with Canada Pension Plan Investment Board.
Last February, the logistics giant sold logistics assets and solar panels worth ¥30.5 billion ($277 million) to GLP J-REIT.
The company said, its 2011-established Japan Development Venture I (GLP JDV I) sold the two assets GLP Soja I and GLP Soja II located in Greater Osaka to GLP J-REIT for $233 million.