GLP

GLP: Global Logistic Properties (GLP) leased 21,000 sqm of space at GLP Hiroshima to Sagawa Global Logistics- one of the largest third-party logistics providers in Japan. Separately, the largest logistics property company in China was featured in a recent news article on its busy 2013 and packed 2014, as well as its partnership in China comprising a large Chinese insurance company, Bank of China and HOPU Funds (backed by China’s largest state-owned companies and institutional investors). Market observers note that the partnership was more defensive, as it helps to avert the threat of a large investor joining forces with China state-owned enterprises to set up a rival to GLP. Chairman, Jeffrey Schwartz, expects the investment to help open more opportunities in the country- where guanxi or relationships count for a lot. Shortly after the deal, GLP struck a partnership with Bank of China, where the bank will provide financing for GLP's customers over inventory in its warehouses as collateral, easing liquiding concerns for the fast-growing third-party logistic companies. With domestic consumption in China rising, there may be considerable potential for the country's logistics industry. At $2.65, GLP trades at 23% discount to consensus RNAV of $3.45. The counter remains a key constituent in Market Insights model Growth portfolio.