Global Logistic Properties Press Release1
• GLP continues to grow its fund management platform with the world’s leading institutional investors
• CBRE Global Multi Manager separate account clients (including one of its sponsored funds) are acquiring 16.7% of GLP-JLP from GLP for JPY7.6 billion (US$98 million)
• GLP will continue to manage the portfolio of 15 modern logistics facilities in Japan
• Transaction consistent with GLP’s strategyto recycle capital
• CBRE Global Multi Manager clients gain exposure to strong portfolio, with a high-quality tenant profile and stable cash flow
Global Logistic Properties Limited (“GLP”), one of the world’s largest providers of modern logistics facilities, today announced the sale of 16.7% of the total outstanding equity of GLP Japan Logistics Partners (“GLP-JLP”)2 to clients of CBRE Global Multi Manager for JPY7.6 billion (US$98 million)3. CBRE Global Multi Manager is the privateequity indirect investment division of CBRE Global Investors, which is one of the largest institutional real estate investment managers in the world.
GLP-JLP was a 50:50 joint venture between GLP and China Investment Corporation (“CIC”). At the time the joint venture was announced, GLP stated its equity exposure to Japan will remain stable or go down over time. Following the transaction announced today, GLP will retain a 33.3% interest in GLP-JLP and CIC will retain 50%. GLP will remain the asset manager of the portfolio with sole responsibility for day-to-day operations.
The portfolio of 15 modern logistics properties has a total Gross Floor Area of 770,989 sqm (8.3 million square feet), more than 90% of which is located within the prime Greater Tokyo and Osaka areas. As of 30 September 2012, the portfolio had a weighted average lease expiry of 5.2 years, and the overall occupancy of the properties was 98.9%. Under GLP’s management, the portfolio has already seen occupancy increase 90 basis points and a 0.9% increase in rent in the eight months since the acquisition.
Jeffrey Schwartz, Deputy Chairman of GLP, said: “We are delighted to enter this new partnership with an investment manager of CBRE Global Multi Manager’s calibre and global standing. This transaction is in line with our goal, stated at the formation of this joint venture, to recycle capital from our existing equity investments in Japan. We remain focused on further building our fund management platform and driving higher returns for our shareholders.”
Jeremy Plummer, CEO of CBRE Global Multi Manager, said: “Japan is an attractive logistics market, with strong demand and a limited supply of modern facilities. This transaction provides us with the opportunity to partner with GLP, Asia’s market leader in modern logistics facilities, and gives our clients access to a high-quality portfolio with a strong tenant profile and stable cash flow.”
About GLP (www.glprop.com)
GLP is one of the world’s largest providers of modern logistics facilities, with a market-leading presence in China and Japan. It owns, manages and leases out 446 completed properties in 187 logistics parks spread across 36 major cities in China and Japan, 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 (Stock code: MC0.SI).
About CBRE Global Multi Manager (www.cbreglobalinvestors.com)
CBRE Global Multi Manager (GMM) is a multi manager with $12.2 billion in assets under management* as of June 30, 2012, and is the private equity indirect investment division of CBRE Global Investors, which is one of the largest institutional real estate investment managers in the world. GMM manages both separate accounts and pooled funds of funds. Investments include primary unlisted property funds, secondaries, club deals and co-investments, all managed by best-in-class local operators. GMM has 53 professionals located in London, Amsterdam, Boston and Singapore.
M3 Capital Partners (HK) Limited served as exclusive financial advisor to GLP in connection with the original formation of the partnership and the subsequent admission of CBRE Global Multi Manager’s clients.
1. The initial public offering of the Company was sponsored by Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan (S.E.A.) Limited (the “Joint Global Coordinators and Joint Issue Managers”). The Joint Global Coordinators and Joint Issue Managers assume no responsibility for the contents of this announcement.
2. Legal entity known as “Light Year One Holdings Ltd.”
3. Assumed exchange rate –USD1 = JPY77.6
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.
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of GMM’s presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.