Global Logistic Properties (GLP), a subsidiary of the Government of Singapore Investment Corp, is planning to raise at least ¥100 billion (S$1.6 billion) in an initial public offering of its Japanese assets by the end of this year, three people with direct knowledge of the matter said.
GLP has hired Citigroup, Goldman Sachs and Nomura Holdings as the main underwriters for the IPO, which would be the first for a real estate trust in Japan in five years, the sources said. The shares will be sold both in Japan and overseas.
A GLP spokeswoman in Singapore declined comment.
According to GLP’s website, it owns warehouses nationwide in Japan and its assets are worth about ¥516 billion.
The IPO is planned at a time when GLP is trying to expand in Japan. It has won exclusive rights to negotiate the purchase of warehouse assets from LaSalle Investment Management for about ¥140 billion, sources with direct knowledge of the situation said.
GLP had announced it would invest US$250 million (S$306 million) in a joint venture with Canada Pension Plan Investment Board to develop logistics facilities in Japan.
GLP may face a tough time attracting investors as Japan’s Reit Index has lost more than 15 per cent since the beginning of this year, similar to the decline in the benchmark Nikkei 225 stock average over the same period.
The company may, however, find investors willing to bet on stable growth in the warehouse sector, particularly with mail-order companies expanding.
Last October, GLP conducted a US$3 billion IPO, Singapore’s third-largest. GLP shares fell 1.97 per cent to S$1.745 in Singapore yesterday.
Source : Today – 10 Sep 2011