Global Logistic Properties has expanded GLP Japan Development Venture, its 50:50 joint venture with Canada Pension Plan Investment Board (CPPIB) to develop modern logistics properties in Japan.

 

Each partner will contribute an additional 15 billion yen (US$138 million) of equity to bring the total venture size to US$2.2 billion when fully leveraged and invested. The investment identification period has been reset for a further three years.

 

GLP Japan Development Venture was established in September 2011 and first expanded in February 2013. It has committed to projects in various stages of development with current value of US$1.4 billion. Following this announcement, the venture has an investment capacity of US$800 million and GLP’s global fund management platform grows to US$13.2 billion of assets under management.

 

Yoshiyuki Chosa, president of GLP Japan, said: “We are pleased to further grow our fund management platform and strengthen our long-term partnership with CPPIB. GLP Japan Development Venture has consistently outperformed over the past three years with leasing progressing ahead of schedule and achieved rents higher than budgeted. With a strong balance sheet in place, we will continue to be disciplined and selective in pursuing strategic opportunities to drive returns for our shareholders.”

 

In 2Q FY2015, GLP commenced development of GLP Soja II, a 78,000 square metre multi-tenant logistics facility in Okayama prefecture, Western Japan. The total development cost is estimated to be US$88 million.