Global Logistic Properties Ltd - OCBC Investment 2016-09-08: Further syndication of stake in US portfolio

Global Logistic Properties Ltd - OCBC Investment 2016-09-08: Further syndication of stake in US portfolio GLOBAL LOGISTIC PROP LIMITED MC0.SI

Global Logistic Properties Ltd - Further syndication of stake in US portfolio

  • GLP announced that it has completed, on 7 Sep 2016, the planned additional syndication of its interest in a portfolio of industrial assets in the US for US$485m and its stake will be reduced to 9.85%. 
  • To recap, GLP had acquired the US$8b logistics portfolio in the United States in Dec 2014 with the intention of injecting the assets into its fund management platform and ultimately paring down its holdings from 55% to 10% while GIC continues to hold a 45% stake.
  • The US logistics portfolio consists of 115m sq ft of high quality logistics assets in locations with higher barriers to entry, and 26 out of 29 markets have populations above 1m which are ideal for last mile e-commerce deliveries. 
  • We like that GLP’s management is executing strongly on its fund management platform strategy, which leverages on its relationships with major institutions and its facilities management capabilities, and is also developing and diversifying its capital sources for funding future growth. 
  • Maintain BUY with an unchanged fair value estimate of S$2.37.




Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-09-08
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 2.370 Same 2.370


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