Global Logistic Properties (GLP), the provider of modern logistics facilities in China, Japan and Brazil, today announced that GLP Japan Income Partners I will sell seven properties to GLP J-REIT for JPY27.5 billion ($352 million). GLP owns a 33.3% stake in GLP Japan Income Partners I.
The properties have generated a cumulative net levered IRR in excess of 46% for investors in GLP Japan Income Partners I, before management fees and promotes, since they were acquired in February 2012.
Jeffrey Schwartz, Co-Founder of GLP and Chairman of the Executive Committee, said: “The sale of these seven properties creates considerable value for GLP and our partners and enables us to continue investing in the growth of our business. It also further enhances our best-in-class fund management platform.”
The sale was conducted through an auction. The transaction is subject to completion, which is targeted to take place in October 2013. Net cash proceeds from the sale are estimated to be JPY9 billion ($115 million), with GLP’s share at JPY3 billion ($38.4 million). GLP plans to hedge the proceeds and intends to reinvest the capital to maintain its 15% interest in the J-REIT as well as developments in China, Japan and Brazil.
Originally part of a portfolio acquired in February 2012, the sale assets are single-tenant facilities under long term leases which have been earmarked for disposition from the time they were acquired. The seven facilities comprise a total gross floor area (GFA) of 2 million sqft with a 100% lease ratio and a weighted average lease expiry of 6.4 years.
GLP J-REIT, listed on the Tokyo Stock Exchange in December 2012, is a real estate investment trust focused on owning and operating logistics properties in Japan. GLP is the property and asset manager and intends to retain its 15% interest in the J-REIT.