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GIC Real Estate rebrands Asia operations

The Singapore government’s real estate investment firm has renamed ProLogis Asian Operations as Global Logistic Properties after buying out the majority of ProLogis’s investments for $1.3bn.

ProLogis Asian Operations, which was recently sold to GIC Real Estate for $1.3 billion, has re-branded itself Global Logistic Properties (GLP).

The company will retain its original Chinese brand “Pu Luo Si”.

GIC Real Estate, the property arm of the Singapore sovereign wealth fund, the Government of Singapore Investment Corporation (GIC), said in a statement all management would remain in place, including chairman and chief executive officer Jeffrey Schwartz. In November, Schwartz resigned as chairman and chief executive of ProLogis before taking the helm of GLP.

ProLogis agreed last December to sell off all of its operations in China and its property fund interests in Japan to GIC Real Estate for $1.3 billion in order to pay down debt. The sale was a 4 percent to 6 percent loss for ProLogis.

GLP’s assets in China include 20.7 million square feet of property, ProLogis’s interests in five China joint ventures and one property fund, a 30 percent interest in retail joint venture SZITIC and 713 acres of land. In Japan, GLP bought out ProLogis’s 20 percent interest in its Japan funds thus obtaining full ownership.

ProLogis and GIC jointly established operations in Japan beginning in 2002 and have to date raised two funds, Prologis Japan Properties I and II. ProLogis and GIC were the funds’ only investors.

ProLogis chief executive Walter Rakowich said at the time that, while the firm would continue to build its business in Asia in the long term, in the short term ProLogis would focus on liquidity and risk mitigation.