Tuesday, May 22, 2012

Global Logistic Properties: BUY; S$1.99

GLP announced it has secured another project for its Japan Development
Fund. GLP Atsugi is a 109,500sm GFA large scale multi-tenant facility in
Aikawa in the Kanagawa prefecture in Greater Tokyo region. GLP Atsugi will
be equipped with dual ramp up access as well as back up power supply and
seismic isolation structure. The project is expected to cost US$169m and
development is scheduled to start in Nov 2012 and complete by Dec 2013.
About 35% of the building (first and second floors) has been pre-committed
to an existing customer. The customer is a 3PL company and has chosen GLP’s
facility to consolidate their operations in the region for effective
business and cost management.

This is GLP's third development project under its Japan Development Fund, a
50/50 JV with Canadian Pension Plan Investment Board and its sixth asset in
Kanagawa, a major distribution centre for the Greater Tokyo region. The
property is located within the Nairiku Kogyo Danchi, a 24-hour logistics
and industrial park which is strategically located 1km from the Sagamihara
interchange exit (Ken-O Expressway) and 12km from the Atsugi interchange
exit (Tomei Expressway), offering convenient access to the Greater Tokyo

Following this win, total value of development projects secured under the
fund currently stands at US$427m, with these projects to be progressively
completed from 2Q13 onwards. This will contribute positively to GLP in the
form of a growing fee income base as well as share of profits from the

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