GLP’s Japan REIT to raise S$1.6b

GLP J-REIT, a real estate investment trust set up by Singapore’s Global Logistic Properties (GLP), will sell as much as ¥111 billion ($1.6 billion) worth of shares in its initial public offering in Japan, according to a regulatory filing yesterday.

GLP, one of the world’s largest warehouse operators, said last month it would sell shares in the REIT, which has 30 properties valued at US$2.6 billion (S$3.2 billion), in the IPO.

The Singapore firm expects to use the proceeds from the offer mainly for projects in China and Japan.

GLP J-REIT, which will be Japan’s largest public real estate investment trust featuring logistics, said yesterday it would sell the shares at between ¥59,500 and ¥60,500 apiece, against the expected price of ¥60,000.

The final price will be set on Dec 12 before the shares start trading on Dec 21.

GLP J-REIT will sell 1.747 million shares in total, of which 1.105 million shares will be sold in Japan and the rest allocated to overseas investors. The REIT may sell as many as 87,400 more shares, depending on demand.

GLP J-REIT will join Japan Logistics Fund and Industrial & Infrastructure Fund Investment, the two publicly listed real estate trusts in Japan that focus on the warehousing business.

Japan’s logistics property market is set to grow as only 2 per cent of warehouse facilities in Japan are modern, Mr Takeshi Akagi, head of research and advisory for Jones Lang Lasalle, said last week.

The demand for modern warehouses is set to rise as more companies are outsourcing logistics businesses to cut costs and the volume of Internet shopping traffic is increasing, he said.

GLP’s REIT debut will follow that of Daiwa House REIT Investment Corp, a trust featuring logistics and retail facilities, that raised about ¥50 billion in its IPO last month.

Source : Today – 4 Dec 2012

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