GLP Japan REIT raises US$532m to acquire logistics assets

GLP Japan REIT raises US$532m to acquire logistics assets

GLP Japan Real Estate Investment Trust (GLP J-REIT) has completed a global offering of newly issued investment units, raising JPY 55.6 billion (offer price based, approximately US$532 million) to acquire seven logistics assets in the Tokyo metropolitan area and the Greater Osaka area.

The diversified portfolio of assets has a total leasable area of approximately 328,000 sq m (approximately 3.5 million sq ft)and an occupancy rate of 100 percent. The acquisition was completed on 11 December 2020.

This acquisition marks GLP J-REIT’s largest acquisition since its IPO in 2012 and places GLP J-REIT amongst the largest logistics J-REITs with a JPY 741.1 billion (approximately US$7.1 billion)portfolio.

“As the market leader and pioneer of modern logistics in Japan, we have developed a strong track record and continue to see strong interest from both domestic and international investors in GLP’s core real estate funds. We are believers in the long-term potential of the Japanese logistics market and continue to see strong fundamentals which are driven by domestic consumption-led growth, e-commerce and supply chain modernization,” said Yoshiyuki Chosa, president of GLP Japan.

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“This offering represents another significant milestone for GLP J-REIT. In 2020 GLP J-REIT raised approximately US$737 million of capital and focused on executing our expansion and growth strategies to strengthen its position as a market leader in the J-REIT market,” added Yoshiyuki Miura, president of GLP Japan Advisors Inc. 

GLP J-REIT’s assets under management (AUM) has grown approximately 14 percent annually over the last five years supported by asset acquisitions from GLP of approximately US$4 billion.