GLP, CIC Form Joint Venture To Acquire Modern Logistics Facilities In Japan
By NewsDesk
Global Logistic Properties Limited (GLP), the market leader in modern logistics facilities in China and Japan, has announced that GLP and China Investment Corporation (CIC), through their respective wholly-owned subsidiaries, have entered into a 50:50 joint venture to acquire 15 modern logistics facilities in Japan from LaSalle Investment Management for JPY122.6 billion (US$1.6 billion).
The portfolio of 15 properties to be acquired will have a Gross Floor Area of 770,989 sqm with more than 90 percent of the GFA located within the Greater Tokyo and Osaka areas. The current occupancy of the properties is 98.3 per cent with a weighted average lease expiry of 5.6 years. The portfolio comprises modern facilities with a weighted average building age of only 6.9 years.
Jeffrey Schwartz, Deputy Chairman of GLP said, “The transaction will be accretive to GLP from day one. The equity portion of this transaction represents less than one year of our operating cash flow created by our current Japan operations.”
“We are very excited about this opportunity, which we believe will create strong value for our shareholders. GLP and CIC are only acquiring the assets that met our investment criteria.” added Mr. Schwartz.
Ming Z Mei, CEO of GLP said, “Demand in Japan continues to come from companies working to become more competitive and are focused on ensuring they have more efficient warehouses. Companies are also rethinking how their supply chains are managed so they can minimise any risk of disruption in the future.
As a result, demand for quality modern warehouse space is on the rise, while there remains a lack of supply of modern warehouse. The properties we are acquiring come with a strong tenant profile – 67 per cent of the space is utilised by large third-party logistics service providers and 13 per cent is leased by e-commerce companies.”
Mr. Mei added, “After this acquisition, our Japan portfolio will grow approximately 30 per cent to 3.6 million sqm, making our footprint almost 40 per cent larger than our next largest competitor.”
Source: GLP
