GLP

GLP: Positive announcement, Beijing Aviation Ground Service signing a 20-yr lease with GLP’s 53% subsidiary, Airport City Dev. Lease of the 60,000 sqm facilities at ACL's bonded air terminal warehouse at Beijing International Airport, carries a contract value of Rmb 850m yuan (US$134m) for the first ten yrs - GLP's largest lease by value. Grp also believe it is the largest logistics lease ever in China. Grp note that securing major lease demonstrates value add GLP has brought since the acquisition. Leveraging on GLP’s customer network, ACL managed to broaden its customer base in a short time. GLP also brought its expertise in professional pty mgt and high quality customer service to ACL, boosting occupancy and performance improved significantly. We note that move further strengthens GLP’s foray into aviation logistics, and growth is set to continue, with China further announcing that it plans to build 70 new airports within the next three yrs, as part of an ambitious expansion plans in the industry despite an economic slowdown. Also reiterated pledges that carriers would buy on average more than 300 planes a year from 2011 to 2015.