GLOBAL LOGISTIC PROP LIMITED
MC0.SI
Divestments to GLP J-REIT
- GLP announced that it will divest five wholly-owned properties in Japan to GLP J-REIT for JPY38.1b (US$306m), which is in line with the properties’ fair market value as of 30 Jun 2015.
- The assets have a total gross floor area of 203k sqm and the group’s fund management platform will expand to US$27.4b after the transaction’s expected completion in Sep 2015.
- We like that the group continues to expediently recycle capital for redeployment into future growth and projects yielding higher ROE.
- In particular, GLP J-REIT has been an effective long-term destination for the group’s stabilized assets in Japan and will hold an estimated US$3.4b of assets under management after this set of divestments.
- GLP has also recently reaffirmed its FY16 Japanese development targets of US$980m in development starts (up 48% YoY) and US$720m of completions (12x higher YoY).
- Maintain BUY with an unchanged fair value estimate of S$3.07.
Eli Lee | http://www.ocbcresearch.com/ OCBC Investment Research 2015-08-11
3.07
Same
3.07
