News and Viewpoint

We look forward to further expanding the platform for fund management: expand the global network to the United States

Time:August 12 2014

On 12 8, 2014, Singapore. GLP, the leading modern logistics facility provider in China, Japan and Brazil, and Government of Singapore Investment Corp (GIC) jointly invested 8.1 billion USD to take over one of the biggest portfolios of logistics and real estate in the United States. The transaction enabled GLP to rapidly form a leading scale in the United States, the biggest economic entity and logistics market all over the world, so that GLP could carry on its expansion strategy in the best logistics market all over the world with the first-class platform for fund management.

The transaction was expected to close in the first quarter of 2015, and then GLP would hold 55% of shares in GLP US Income Partners I. The fund management business of GLP enabled itself to efficiently expand scale, integrate resources and obtain market leadership in the target market, while generating good risk-adjusted returns. The organizations within the company had been prepared for fully supporting the entry of new market, and local excellent teams would further strengthen the professional management ability of GLP after integration.

The property portfolio taken over for 8.1 billion USD was distributed in 36 major markets of the United States, with the total construction area of nearly 11 million square meters and important strategic customers, who could be extended on GLP's global network platform. The overall rental rate of property reached 90% as of September, 2014. The acquisition cost was lower than replacement cost for GLP this time.

Mei Zhiming, the CEO of GLP, expressed, "The transaction enables us to rapidly form a certain scale in the logistics market of the United States, and obtain excellent teams and important customer resources. The local management team is quite experienced. We have cooperated with most of existing team members before, and believe that this cooperation will bring about giant synergistic effect. Investors have strong desire to invest this transaction, and we are confident of setting up the fund before August, 2015. Meanwhile, we are glad to further expand the footprint of GLP, and extend our business to the global best logistics market in order. China is still given the priority of development. GLP will also continue to focus on its extension plan in China, Japan and Brazil while expanding the fund management platform."

The newly increased transaction would significantly promote the development of GLP fund management platform

After closing the transaction, GLP fund management platform would increase by 61% to 21.3 billion USD.

 

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