SINGAPORE : Global Logistics Properties (GLP) has said it is investing US$334 million to expand its portfolio in Brazil.
It is part of a plan to jointly acquire two logistics portfolios worth around US$1.45 billion with the Canada Pension Plan Investment Board (CPPIB), China Investment Corp (CIC) and Government of Singapore Investment Corp (GIC).
GLP said in a statement the move is consistent with its strategy to focus on the best markets and grow its fund management platform.
Ming Z Mei, CEO of GLP, said: "We remain mindful of the global economic conditions, but are confident that our unrivalled market presence in China, Japan and now Brazil positions us well for future growth."
The company intends to fund part or all of its initial equity commitment of US$334 million with a private equity placement.
GLP also announced that it had received approval to list its J-REIT on the Tokyo Stock Exchange.
Earlier this month GLP, a unit of GIC, said it intends to contribute 30 of its 68 Japanese logistics facilities to a real estate investment trust that it will partly own and manage.
The initial contribution will amount to about US$2.6 billion.
GLP said in a statement that units of the J-REIT will be offered through an initial public offering (IPO) in Japan.
The company said the Group will retain a unit-holding interest of about 15 per cent in the J-REIT upon completion of the IPO.
No public offering of units of the J-REIT will be made in Singapore.
GLP said it hopes to raise approximately US$1.3 billion from the IPO.
Separately, GLP said its third-quarter net profit dropped 3.1 per cent from a year earlier to US$194.54m.
Revenue increased 24.8 per cent to US$172.94m, mainly due to the completion and stabilisation of development projects in China.
It said rental rates also improved in China.
Revenue contribution also came from its Transfar Logistics unit acquired in December 2011, as well as asset management and development fee income from joint ventures in Japan.
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