Global Logistic Properties (GLP), which counts Singapore sovereign wealth fund GIC as its largest stakeholder, is looking to build Japan's largest modern logistics park.
The fund manager and logistics facilities provider, which manages US$39 billion (S$57 billion) of industrial properties worldwide, said yesterday that it had secured a strategic land parcel in metropolitan Tokyo.
The project, GLP Sagamihara, will provide more than 7 million sq ft of total gross floor area across six buildings.
The company said in a press release yesterday that the total investment cost of GLP Sagamihara will be 133 billion yen (S$1.6 billion).
The first phase of construction is expected to begin in 2020.An artist's impression of GLP Sagamihara. It will provide more than 7 million sq ft of total gross floor area across six buildings. Construction is set to begin in 2020.Photo: Global Logistics Properties (GLP)
Mainboard-listed GLP has two other facilities in the Sagamihara area - the GLP Atsugi II and GLP Ayase. The company said these developments were fully leased a year before completion.
GLP Japan president Yoshiyuki Chosa said: "The team did a fantastic job securing land in a highly desirable area. The size of the uniquely positioned site allows layout flexibility to cater to different customer segments, including cold storage, manufacturing and research and development."
The land acquisition follows a request earlier this month from GIC to undertake a strategic review of options available to enhance shareholder value.
"As part of the strategic review, the company, through JPMorgan, is in the process of making preliminary approaches to various parties to evaluate the viability of options available for its business," GLP said earlier this month, although it added that there is no assurance that any transaction will materialise from the strategic review.
The review comes during a time when the company has inked several significant deals.
Earlier this month, it announced the establishment of a US$620 million fund expected to invest US$1.5 billion over three years.
The announcement came a day after GLP completed the acquisition of a US$1.1 billion logistics portfolio from Hillwood Development, a firm founded by the eldest son of billionaire Texas businessman and former United States presidential candidate Ross Perot.
It also has several developments in Japan in the pipeline, including a 27,000 sq m modern logistics facility in Osaka which was announced in September.
While GLP ranks behind Prologis in the US, it is the largest logistics property owner and operator in China, Japan and Brazil.
GLP shares closed up two cents at $2.23 after the deal was announced yesterday.
This article was first published on Dec 28, 2016. Get a copy of The Straits Times or go to straitstimes.com for more stories.