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GLP's US$1.1b warehouse purchase will not immediately affect ratings: Moody's
MOODY'S Investors Service on Thursday said Global Logistic Properties' (GLP) acquisition of a logistics portfolio in the United States from Hillwood Development Company will not immediately affect the company's ratings.
These ratings include its Baa2 issuer or senior unsecured debt ratings, the provisional (P) Baa2 rating on its senior unsecured medium-term note programme, and the negative outlook on the ratings.
GLP said this week that it planned to buy warehouses in the US from Hillwood Development Company for US$1.1 billion.
"We do not expect this third US acquisition by GLP to raise its financial risk, due to the manageable size of the consideration relative to its scale, its track record of syndicating its ownership in projects to global investors, and its adequate internal resources to fund the acquisition," says Stephanie Lau, a Moody's Assistant Vice President and Analyst.
Moody's expects GLP will have more than sufficient funds to pay for the first acquisition instalment of US$700 million, which will be due in December 2016, even if it does not complete the syndication by then. By end of the year, the company is estimated to have total internal sources of around US$1.8 billion to US$1.9 billion.