GLP and the Canada Pension Plan Investment Board have launched their second Japan development venture fund. GLP Japan Development Venture II, a 50:50 joint venture, has $873 million of equity commitments and is expected to reach $2 billion in over three years. GLP JDV II is expected to start construction of new developments in 2016. GLP JDV II is a follow-on venture to GLP Japan Development Venture I, which was launched in September 2011 and is 92 percent invested. M3 Capital Partners (HK) Limited was financial advisor to GLP.
GLP AND CANADA PENSION PLAN INVESTMENT BOARD ESTABLISH SECOND JAPAN DEVELOPMENT VENTURE
Tokyo, Japan / Toronto, Canada, 17 February 2016 – GLP, the leading global provider of modern logistics facilities, and Canada Pension Plan Investment Board (“CPPIB”), one of the leading retirement funds in the world, announced the establishment of a 50:50 joint venture, GLP Japan Development Venture II (“GLP JDV II”), with total equity commitments of JPY100 billion (USD 873 million1). GLP JDV II is expected to reach US$2 billion over three years. The Venture’s investment strategy allows it to sell assets to GLP J-REIT, providing higher flexibility and attractive returns. GLP JDV II is expected to commence construction of new developments in 2016.
Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: “The demand for modern logistics facilities in Japan remains very strong and we are delighted to have the opportunity to partner with CPPIB once again. The market landscape has evolved since the launch of our first Japan development fund more than four years ago and we feel it is a good time to lock in long-term capital.”
Jimmy Phua, Managing Director and Head of Real Estate Investments, Asia, CPPIB, said: “The strong fundamentals in Japanese logistics market, as well as GLP’s attractive development pipeline, make GLP JDV II a compelling investment opportunity for a long-term investor like CPPIB. We remain committed to investing in the Japanese market and are pleased to do so, while also continuing our strategic relationship with GLP, one of our key global real estate partners.”
GLP JDV II is a follow-on venture to GLP Japan Development Venture I (“GLP JDV I”), GLP and CPPIB’s first Japan development venture which was launched in September 2011 and expanded twice since. GLP JDV I has reached 92% of its investment capacity, with US$2.4 billion2 of projects in various stages of development.
GLP and CPPIB continue to see solid customer demand driven by limited supply of modern logistics infrastructure and ongoing supply chain modernization.
GLP JDV II will be seeded with GLP Nagareyama, a large-scale logistics park in Greater Tokyo providing 319,000 sqm (3.4 million sq ft) of total gross floor area. GLP Nagareyama is GLP’s largest development project in the country, expected to be constructed in phases at a total investment cost of JPY59 billion (US$515 million).
M3 Capital Partners (HK) Limited served as exclusive financial advisor to GLP in connection with the formation of GLP JDV II.
1 Unless stated, all exchange rates are reported as 1 USD = JPY114.60, the closing exchange rate as of 15 February 2016
2 When fully leveraged and invested
About GLP (www.glprop.com)
GLP is the leading global provider of modern logistics facilities. The Company develops, owns and manages a 50 million square meters (538 million square feet) portfolio of logistics facilities across China, Japan, Brazil and USA that cater to domestic consumption. GLP’s 4,000 customers include some of the world’s most dynamic manufacturers, retailers and third party logistics companies. Fund management is an important and growing part of GLP’s business, providing significant capital to support sustainable long-term growth, while enhancing returns on GLP’s invested capital. As of December 31, 2015, GLP’s total portfolio assets amounted to US$34 billion.
GLP is listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP).
About Canada Pension Plan Investment Board (www.cppib.com)
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2015, the CPP Fund totaled C$282.6 billion. For more information about CPPIB, please visit www.cppib.comor follow us on LinkedIn or Twitter.