Asia’s biggest logistics firm’s assault on the region continues.
Singapore-based Global Logistic Properties (GLP) has formed a second joint venture partnership with Canada Pension Plan Investment Board (CPPIB) to invest in Japan’s logistics sector. The two firms have committed ¥100 billion (€790 million; $880 million) equity in total via the 50:50 venture called the GLP Japan Development Venture (JDV) II.
The total equity investment is expected to increase to $2 billion in three years, significantly more than the ¥130 billion invested by the Canadian pension fund and GLP into GLP JDV I. That partnership, which was formed in September 2011, is now nearing its investment capacity.
In a strategy change from that of the maiden venture, assets under GLP JDV II can be sold to GLP’s Japan real estate investment trust (REIT), a decision the firm said would help in recycling capital accretive to the fund term, and generate attractive returns for the partners. Logistics developments in Japan typically target mid-teens returns, according to Ralf Wessel, head of fund management at GLP.
With assets under management of $8.9 billion, GLP’s Japan business forms an important part of the firm’s regional footprint. Of the total AUM, around $6 billion of the assets can be found across Tokyo and Osaka.