GLP

GLP: Starts talking to potential tenants for its planned US$155m or $186.2m large-scale, multi-tenant logistics facility in Japan's Saitama prefecture. Construction for GLP Misato III will start in Apr12, with building works expected to be completed in May 13. The facility will be 93,831 sqm in size.

Grp highlights that currently, operations of its distribution centres in the Misato area are very strong with vacancy at 0.8%, far below 5%, the average of the Tokyo metropolitan area and expect strong demand for this development, as there has been no new supply of a large-scale multi-tenant facility in the Misato area for the past 3 yrs.

We note that mkt remains Bullish on Grp with 7 Buy Calls and 1 Sell, with Mean TP of $2.42. Valuation appears compelling at 0.97x P/B vs peer Hang Lung of 1.2x P/B.