GLP sells four properties in Japan for 51.6b yen

GLOBAL Logistic Properties (GLP) has signed an agreement to sell four wholly owned properties in Japan for 51.6 billion yen (S$642.4 million), a continuation of its capital recycling strategy, it said on Tuesday.

The four properties are 100 per cent leased, single-tenant facilities comprising a total gross floor area of 206,000 square metres (2.2 million square feet).

The sale price is 5 per cent higher than the latest appraisal values and equates to a weighted average cap rate of 4.5 per cent.

GLP expects to receive net sale proceeds of US$266 million upon the scheduled completion on Sept 1, 2017.

GLP J-Reit is acquiring the assets via a bridge scheme which offers flexibility to complete the transaction at a future date. Under the bridge scheme, Sumitomo Mitsui Finance and Leasing Co, Ltd will hold the assets for an interim period before GLP J-Reit acquires the four properties at a future date, it said.

Ming Z Mei, chief executive officer of GLP, said: "This transaction is in line with our capital recycling strategy and growing fund management AUM. GLP J-Reit is an important part of our US$39 billion global fund management platform and we remain committed to further growing our portfolio in Japan."