CPP Investment Board

CPP Investment Board


February 16, 2016 18:11 ET

GLP and Canada Pension Plan Investment Board Establish Second Japan Development Venture

GLP JDV II: US$2 Billion Follow-On Venture that Leverages Success of GLP JDV I

Enhanced Investment Strategy Provides Higher Flexibility and Attractive Returns

TOKYO, JAPAN and TORONTO, ONTARIO--(Marketwired - Feb. 16, 2016) - GLP, the leading global provider of modern logistics facilities, and Canada Pension Plan Investment Board ("CPPIB"), one of the leading retirement funds in the world, announced the establishment of a 50:50 joint venture, GLP Japan Development Venture II ("GLP JDV II"), with total equity commitments of JPY100 billion (USD 873 million1). GLP JDV II is expected to reach US$2 billion over three years. The Venture's investment strategy allows it to sell assets to GLP J-REIT, providing higher flexibility and attractive returns. GLP JDV II is expected to commence construction of new developments in 2016.

Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: "The demand for modern logistics facilities in Japan remains very strong and we are delighted to have the opportunity to partner with CPPIB once again. The market landscape has evolved since the launch of our first Japan development fund more than four years ago and we feel it is a good time to lock in long-term capital."

Jimmy Phua, Managing Director and Head of Real Estate Investments, Asia, CPPIB, said: "The strong fundamentals in the Japanese logistics market, as well as GLP's attractive development pipeline, make GLP JDV II a compelling investment opportunity for a long-term investor like CPPIB. We remain committed to investing in the Japanese market and are pleased to do so, while also continuing our strategic relationship with GLP, one of our key global real estate partners."

GLP JDV II is a follow-on venture to GLP Japan Development Venture I ("GLP JDV I"), GLP and CPPIB's first Japan development venture which was launched in September 2011 and expanded twice since. GLP JDV I has reached 92% of its investment capacity, with US$2.4 billion2 of projects in various stages of development.

GLP and CPPIB continue to see solid customer demand driven by limited supply of modern logistics infrastructure and ongoing supply chain modernization.

GLP JDV II will be seeded with GLP Nagareyama, a large-scale logistics park in Greater Tokyo providing 319,000 square metres (3.4 million square feet) of total gross floor area. GLP Nagareyama is GLP's largest development project in the country, expected to be constructed in phases at a total investment cost of JPY59 billion (US$515 million).

M3 Capital Partners (HK) Limited served as exclusive financial advisor to GLP in connection with the formation of GLP JDV II.

1 Unless stated, all exchange rates are reported as 1 USD = JPY114.60, the closing exchange rate as of 15 February 2016

2 When fully leveraged and invested

About GLP (www.glprop.com)

GLP is the leading global provider of modern logistics facilities. The Company develops, owns and manages a 50 million square meters (538 million square feet) portfolio of logistics facilities across China, Japan, Brazil and USA that cater to domestic consumption. GLP's 4,000 customers include some of the world's most dynamic manufacturers, retailers and third party logistics companies. Fund management is an important and growing part of GLP's business, providing significant capital to support sustainable long-term growth, while enhancing returns on GLP's invested capital. As of December 31, 2015, GLP's total portfolio assets amounted to US$34 billion.

GLP is listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP).

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2015, the CPP Fund totalled C$282.6 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.

This press release is not an offer of securities for sale or a solicitation of an offer to purchase securities. The information in this press release may not contain, and you may not rely on this press release as providing, all material information concerning the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of GLP or its subsidiaries. Please refer to our unaudited financial statements for a complete report of our financial performance and position. This release may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements regarding the intent, belief and current expectations of GLP or its officers with respect to various matters. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should," "intends," "foresees," "estimates," "projects," and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Similarly, statements that describe objectives, plans or goals also are forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events and speak only as of the date of this press release. GLP does not undertake to revise forward-looking statements to reflect future events or circumstances. No assurance can be given that future events will occur, that projections will be achieved, or that GLP's assumptions are correct.

Contact Information

  • GLP
    Ambika Goel, CFA
    SVP- Capital Markets and Investor Relations
    +65 6643 6372

    Canada Pension Plan Investment Board
    Dan Madge
    Senior Manager, Media Relations