Tuesday, December 4, 2012

GLP J-Reit to sell $1.6b in shares

Dec 04, 2012

TOKYO - GLP J-Reit, a real estate trust set up by Singapore's Global Logistic Properties, will sell as much as 111 billion yen's (S$1.6 billion) worth of shares in its initial public offering (IPO) in Japan, according to a government filing yesterday.

GLP, one of the world's largest warehouse operators, said last month it would sell shares in the Reit, which has 30 properties valued at US$2.6 billion (S$3.1 billion), in the IPO.
The Singapore firm expects to use the proceeds from the offer mainly for projects in China and Japan.

GLP J-Reit, which will be Japan's largest public real estate trust featuring logistics, said yesterday it would sell the shares at between 59,500 and 60,500 yen apiece, against the expected price of 60,000 yen. The final price will be set on Dec 12 before the shares start trading.

GLP J-Reit will sell 1.747 million shares in total, of which 1.105 million shares will be sold in Japan and the rest allocated to overseas investors. The Reit may sell as many as 87,400 more shares, depending on demand.

GLP J-Reit will join Japan Logistics Fund and Industrial & Infrastructure Fund Investment, the two publicly listed real estate trusts in Japan that focus on the warehousing business.
Japan's logistics property market is set to grow, as only 2 per cent of warehouse facilities in Japan are modern, Mr Takeshi Akagi, head of research and advisory for Jones Lang Lasalle, said in a presentation last week.

Demand for modern warehouses is set to rise, as more companies are outsourcing logistics businesses to cut costs and the volume of Internet shopping traffic is increasing, he said.

GLP's Reit debut will follow that of Daiwa House Reit Investment Corp, a real estate trust featuring logistics and retail facilities, that raised about 50 billion yen in its initial pubic offering last month.

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