MODERN logistics facilities provider Global Logistic Properties Limited (GLP) said it is expanding its equally-owned joint venture with Canada Pension Plan Investment Board (CPPIB) to develop modern logistics properties in Japan through additional equity injection.
Each partner will contribute an additional 15 billion yen (US$138 million) of equity to GLP Japan Development Venture, to bring the total venture size to US$2.2 billion when fully leveraged and invested.
The investment period has been reset for a further three years.
GLP Japan Development Venture was set up in September 2011 and first expanded in February 2013. It has committed to projects in various stages of development currently worth US$1.4 billion.
Following its latest expansion, the venture has an investment capacity of US$800 million; GLP's global fund management platform will grow to US$13.2 billion of assets under management.
GLP Japan president Yoshiyuki Chosa said: "We are pleased to further grow our fund-management platform and strengthen our long-term partnership with CPPIB.
"GLP Japan Development Venture has consistently outperformed over the past three years with leasing progressing ahead of schedule and achieving rents higher than budgeted. With a strong balance sheet in place, we will continue to be disciplined and selective in pursuing strategic opportunities to drive returns for our shareholders."