Brokers' take

Global Logistic Properties | Buy April 4 close: S$1.985 Target price: S$2.68 OCBC Investment Research, April 4

Global Logistic Properties (GLP) recently announced that it has signed a 15,000 square metre (161,000 square feet) lease with Akachan House at GLP Narita in Greater Tokyo. Akachan House, a leading e-commerce retailer for baby products in Japan, will be consolidating its multiple operations in Greater Tokyo into GLP Narita, which will be used as a hub to support its same-day distribution needs in Japan. GLP management indicates that domestic consumption in its key Japanese market (its second largest market behind China and constitutes 23 per cent of the group's net asset value) remains healthy and that the group continues to see demand for its facilities as customers look to consolidate their operations within well-located facilities.

In addition, GLP announced in February 2016 that it has established a 50:50 joint venture, GLP Japan Development Venture II (GLP JDV II), with the Canada Pension Plan Investment Board (CPPIB). This is the second venture established by these two groups after GLP Japan Development Venture I, which was launched in September 2011 and has since reached 92 per cent of its investment capacity with US$2.4 billion of projects in various stages of development. GLP JDV II will initially be established with total equity commitments of 100 billion yen (US$873 million, S$1.2 billion), and its assets under managements expected to reach US$2 billion over the next three years.