GLP REIT executes option on $142m in industrial properties

Global Logistic Properties, the logistics developer-cum-fund manager, has sold three more properties to Japan’s largest real estate investment trust, which it listed late last year.

GLP REIT, the J-REIT launched by Singapore-listed Global Logistic Properties (GLP) at the end of last year, has exercised its right to acquire three logistics properties in Japan from the developer-cum-fund manager in a deal valued at $142 million.

GLP announced today it had agreed to sell properties in Tokyo, Osaka and Miyagi to the $2.6 billion real estate investment trust, which was launched by GLP in November, immediately becoming Japan’s largest listed logistics REIT. The J-REIT, which now contains 33 properties previously owned by GLP, also has a “right of first look” over GLP’s remaining 35 assets in Japan.

The sales are part of GLP’s ambition to grow its fund management platform. Thanks largely to these sale in Japan, GLP’s fund management platform will grow to $7.1 billion.

Jeffrey Schwartz, co-founder and chairman of GLP, said in the announcement: “This is another milestone for both GLP and GLP J-REIT, building on the successful listing of the J-REIT on the Tokyo Stock Exchange. This transaction is consistent with our stated strategies to recycle capital and grow our fund management business.”

GLP has retained a 15 percent interest in GLP J-REIT, of which Schwartz said: “Our retained interest makes us well positioned to benefit from the highly attractive market dynamics in Japan.”

Hear more from Jeffrey Schwartz during an exclusive, onstage interview at the PERE Summit: Asia 2013, 27-28 February in Hong Kong.