Mainboard-listed Global Logistic Properties (GLP), a provider of modern logistics facilities in China, Japan and Brazil, announced on Monday 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.
The company's total assets under fund management is now US$12.6 billion.
In March this year, GLP reached a deal to acquire a portfolio of Brazil assets from BR Properties, with the stated intention of injecting the portfolio into its fund management platform. The GLP Brazil Income Partners II (GLP BIP II) investment fund comprises approximately 896,000 square metres of high-quality logistics assets, mainly located in Sao Paulo and Rio de Janeiro. Following Monday's announcement, GLP retains a 40 per cent stake in GLP BIP II, with Canada Pension Plan Investment Board (CPPIB) and a leading North American institutional investor each taking approximately a 30 per cent stake. GLP will remain the asset manager of the US$1.1 billion portfolio with sole responsibility for day-to-day operations.
A second investment fund, GLP Brazil Development Partners I (GLP BDP I), has been expanded by US$400 million or 36 per cent to US$1.5 billion. The additional capital will be used to acquire a strategically-positioned land parcel in Rio de Janeiro, comprising 350,000 sqm of buildable area.GLP owns 40 per cent of GLP BDP I, with CPPIB and Singapore sovereign fund GIC holding 39.6 per cent and 20.4 per cent respectively.
GLP is expected to receive net cash proceeds of approximately 926 million Brazilian real ($468.2 million) from the transfer of assets into GLP BIP II, to be reinvested into developments in Brazil over time. GLP is expected to recognize a foreign exchange loss of approximately US$24.6 million in the second quarter of financial year 2015, resulting from depreciation of the Brazilian real against the US dollar.