Global Logistic expands Japan development venture by 29% to $2.8 billion

Mainboard-listed Global Logistic Properties said on Wednesday it has expanded its 50:50 joint venture with Canada Pension Plan Investment Board (CPPIB) to develop modern logistics properties in Japan.

GLP, which also provides modern logistics facilities in China and Brazil, said the partners will each contribute an additional 15 billion yen (S$180 million) of equity to GLP Japan Development Venture to bring its size to US$2.2 billion (S$2.8 billion) when fully leveraged and invested.

The investment identification period has been reset for a further three years.

GLP Japan was established in September 2011 and first expanded in February 2013. The venture has committed to projects in various stages of development with current value of US$1.4 billion, and now has an investment capacity of US$800 million.

GLP on Monday annouced the strategic growth of its platform in Brazil, boosting the funds under its management in the country by 68 per cent or US$1.5 billion (S$1.91 billion) to US$3.7 billion.

It said Tuesday that its global fund management platform has grown to US$13.2 billion of assets under management.

Said Yoshiyuki Chosa, president of GLP Japan, said: "We are pleased to further grow our fund management platform and strengthen our long-term partnership with CPPIB. GLP Japan Development Venture has consistently outperformed over the past three years with leasing progressing ahead of schedule and achieved rents higher than budgeted."

"With a strong balance sheet in place, we will continue to be disciplined and selective in pursuing strategic opportunities to drive returns for our shareholders."