GLP to buy S$1.7b real estate assets in Brazil

Global Logistic Properties (GLP), the real estate giant whose key shareholders include Singapore’s sovereign wealth fund GIC, has agreed to pay Brazil’s BR Properties 3.2 billion reais (S$1.7 billion) for property assets in the South American country.

Singapore-based GLP is buying 34 industrial and logistics facilities in Brazil that will lead to a yield of 9.4 per cent, the company said yesterday in a regulatory filing. The deal is subject to regulatory and shareholder approval.

The portfolio comprises 13 million sq ft of completed industrial and logistic assets, with a lease ratio of 99 per cent. More than 86 per cent is located in the primary logistics markets of Sao Paulo and Rio de Janeiro, which together account for more than 40 per cent of Brazil’s gross domestic product.

Mr Jeffrey Schwartz, co-founder and Chairman of GLP’s executive committee, said the deal will be “immediately accretive to GLP”. He added: “BR Properties’ portfolio of high-quality, strategically-located logistics assets complements our existing portfolio well and will further strengthen our market leadership position in Brazil.”

GLP has been investing in Brazil since 2012, when it was part of a group that spent 2.9 billion reais to acquire all the logistics facilities of the private equity firm Hemisferio Sul Investimentos. Mr Mauro Dias, President of GLP Brazil, yesterday said: “Following this high-quality acquisition, our completed portfolio in Brazil will increase to 28 million sq ft.”

Source : Today – 7 Mar 2014

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