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GLP announces 2nd additional syndication in US portfolio

GLOBAL Logistic Properties Ltd (GLP) has further syndicated its stake in a portfolio of industrial assets in the United States (target portfolio).

GLP said on Thursday that its indirect wholly-owned subsidiary New Western Holdings had on Wednesday entered into agreements with a new co-investor, pursuant to which the GLP will further syndicate an interest of approximately 9.09 per cent in the portfolio for a cash consideration of US$180 million.

GLP added that as at March 31, 2016, the consolidated book value and net tangible asset value attributable to the second additional syndicated interest was US$181.69 million. "The difference between this amount and the cash consideration includes the portion of interim net cash generated by the target portfolio, from the date of acquisition of the target portfolio until the date of closing of the second additional syndication."

Such interim net cash will be retained by the company, GLP noted. The second additional syndication is not expected to have any material impact on the net tangible asset value and earnings per share of the company for the financial year ending March 31, 2017.

Previously, GLP reported an initial syndication of an interest of approximately 65.66 per cent in the target portfolio and a further syndication of an interest of approximately 9.95 per cent, which is not yet completed.