Singapore-listed logistics space landlord Global Logistic Properties (GLP) has agreed to buy 34 assets in Brazil for 3.18 billion Brazilian real (S$1.74 billion).

It will purchase the assets from BR Properties, the second-largest modern logistics provider in Brazil, GLP said on Thursday. The price translates into a yield of 9.4 per cent, it added.

The portfolio comprises 13 million sq ft of space that has been 99 per cent leased. More than 86 per cent of the portfolio is located in Sao Paulo and Rio de Janeiro, which together make up more than 40 per cent of Brazil's economy, GLP said.

"BR Properties' portfolio of high-quality, strategically-located logistics assets complements our existing portfolio well and will further strengthen our market leadership position in Brazil, where we feel very good about the long-term prospects," said Mr Jeffrey H. Schwartz, co-founder of GLP and chairman of its executive committee.

GLP Brazil president Mauro Dias added: "Brazil remains one of the world's best markets for logistics. Demand for modern logistics facilities is strong, underpinned by a young, growing consumer market and a continued drive to improve supply chain efficiency."

The acquisition is expected to be completed by Aug 31 this year and will bring GLP's portfolio of completed space in Brazil to 28 million sq ft.

GLP said it would fund the acquisition, which is expected to be immediately accretive, without the need to issue additional equity.