GLP in final talks for S$2.12b of Japan properties: Sources

Singapore’s Global Logistic Properties (GLP) is in final negotiations to buy LaSalle Investment Management’s Japanese portfolio of real estate that could fetch up to ¥140 billion (S$2.12 billion), according to people familiar with the matter.

If successful, the acquisition would be the biggest property deal in Japan in two years, It would also mark the single biggest foreign investment into Japan since the devastating earthquake on March 11. In May, GLP deputy chairman Jeffrey Schwartz said: “In Japan, we remain bullish on the country’s outlook despite the recent tragic earthquake.”

Given the paltry yields elsewhere in Asia, Japanese real estate remains an attractive destination for foreign capital, particularly given the cheap borrowing costs.

GLP, which is majority-owned by Government of Singapore Investment Corporation (GIC), owns 69 properties in Japan valued at US$6.2 billion (S$7.6 billion). GIC Real Estate, the real estate arm of the GIC, has also been an active player in Japan’s property market for years.

United States private equity firm Blackstone Group is also in talks and is in close competition with GLP for the real estate assets, according to the sources. LaSalle is selling a portfolio of over 20 industrial properties in Japan used for distribution and warehouses by companies.

Source : Today – 2 Jul 2011

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