GLP

GLP: GLP and its 50-50 JV partner in Japan, Canada Pension Plan Investment Board, will each inject an additional ¥15b (US$138m) equity (+29%), to develop modern logistics properties in the country. The capital injection brings the total joint venture size to US$2.2b, based on cost for in-progress developments and latest appraised value for completed assets. Since the JV established in 2011, it has committed to projects in various stages of development, which has a current market value of US$1.4b. With the equity injection, it now has an investment capacity of another US$800m. The JV will also extend its three-year investment identification period to 2017. This has swelled GLP’s fund management platform to US$13.2b. Separately, GLP commenced development of GLP Soja II, a 78,000 sm (840,000 sf) multi-tenant logistics facility in Okayama prefecture, Western Japan. Total development cost is estimated to be ¥9.6b (US$88m). At $2.72, GLP is valued at a 17% discount to consensus RNAV of $3.27.