Tuesday, February 5, 2013

GLP / Prologis

GLP / Prologis: GLP and Canada Pension Plan Investment Board - the 50:50 partners of GLP Japan Development Venture - are each pumping a further 29b yen ($395m) into the JV. The new commitments will more than double to 100b yen the total equity of the JV, which was set up to develop modern logistics properties in Japan. With leverage, the investment target of the venture is US$2.2b. Grp note that its investment pipeline is considerably ahead of schedule and are seeing strong demand for its developments, reflecting attractive fundamentals for modern logistics facilities in Japan. Separately, a Japanese REIT set up by US warehouse operator Prologis Inc. said Mon it will raise $1.08b after pricing its IPO at the top of its proposed range. Nippon Prologis' debut comes as the REIT market in Japan has been benefiting from the Bank of Japan's increasingly aggressive monetary easing and purchasingof REITs. The J-REIT index has already risen 10.5% this year.Last month, GLP J-REIT (3281.TO) made a strong debut on the Tokyo Stock Exchange, jumping as much 7.3% on the first day of trading. Since its listing, shares have risen 25%. We note that given the successful listing of GLP’s REIT in Japan, asset recycling could prove to be a norm for the group going forward. Street has a Mean TP on grp at $2.87 TP, with 9 Buys, 4 Holds and 3 Sells.

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