GLP to Commence Development of Large-scale Logistics Facility in Greater Osaka
GLP will commence development of GLP Naruohama, a 110,000 sqm (1.2 million sq ft) large-scale, multi-tenant logistics facility in Greater Osaka. The total development cost is estimated to be JPY15.7 billion (US$160 million).
- GLP Naruohama, a 110,000 sqm (1.2 million sq ft) multi-tenant logistics facility in Greater Osaka, will begin construction in May 2014
- This is the fifth project under GLP Japan Development Venture, which has now committed a total of JPY59 billion (US$603 million) to-date
- Strong demand for large multi-tenant logistics facilities in Greater Osaka with low vacancy rate of 1.5%
Singapore, 8 July 2013 - Global Logistic Properties Limited (“GLP”), the leading provider of modern logistics facilities in China, Japan and Brazil, will commence development of GLP Naruohama, a 110,000 square meter (“sqm”) (1.2 million square feet (“sq ft”)) large-scale, multi-tenant logistics facility in Greater Osaka. The total development cost is estimated to be JPY15.7 billion (US$160 million ).
GLP Naruohama is the fifth development under GLP Japan Development Venture, a 50/50 joint venture between GLP and the Canada Pension Plan Investment Board that was formed in August 2011. In February 2013, the investment target of the Venture was doubled to US$2.2 billion, led by an attractive investment pipeline and strong market fundamentals. To-date, the Venture has announced five development projects for a total investment of JPY59 billion (US$603 million).
Yoshiyuki Chosa, President of GLP Japan, said, "This exciting new project is strategically located within Greater Osaka, one of Japan’s biggest consumption areas. It is an attractive market for logistics, with the vacancy rate for large multi-tenant facilities currently standing at a low of 1.5%[2]. Prospective tenants of GLP Naruohama will also be able to secure their workforce from a residential town close to our location.”
GLP Naruohama will be developed on a plot of land acquired in Nishinomiya City, Hyogo Prefecture in Greater Osaka. Strategically situated in an established industrial zone, the plot is adjacent to the Naruohama Interchange on the Hanshin Expressway, the core expressway in Osaka, offering convenient access to the large cities of Osaka and Kobe.
The project is GLP’s 21st facility to be located in Greater Osaka, which has a population of around 20 million and represents almost 16% of Japan’s GDP . GLP’s 20 existing properties in the area are 99.9% occupied.
GLP expects construction of GLP Naruohama to begin in May 2014 and to be completed by June 2015. The development will provide features such as a seismic isolation structure to ensure safety and security and provide business continuity to customers at all times.
Appendix
Name of Facility: GLP Naruohama
Location: Naruohama 1-20, Nishinomiya City, Hyogo Prefecture
Total site area: 48,000 sqm (516,000 sq ft)
Total floor area (GFA): 110,000 sqm (1.2 million sq ft)
Net lettable area (NLA): 92,000 sqm (989,000 sq ft)
Commencement of construction: May 2014 (planned)
Completion of construction: June 2015 (planned)
- Planned development site
GLP Naruohama is situated between Kobe and Osaka, two of Japan’s five busiest ports by cargo tonnage. GLP Naruohama is strategically located close to the Naruohama Interchange on the Hanshin Expressway. It is also close to Mukogawa Danchi Station and Mukogawa Danchi, a residential town that will provide GLP with opportunities to attract part time workers for the facility. The majority of logistic locations in Osaka are far from any residential area, further strengthening GLP’s competitive position in the region. - Characteristics of the facility
GLP Naruohama will be a modern multi-tenant logistics facility consisting of five floors above ground, with double rampways allowing truck access to every floor. - Securing business continuity during a disaster
GLP Japan places the utmost priority on adopting advanced business continuity measures in its facility planning and management. The GLP Naruohama development will provide features such as a seismic isolation structure to ensure safety and security and provide business continuity to customers at all times. The facility will also play an important role in restoration and rehabilitation in the event of a disaster.
About Global Logistic Properties (www.glprop.com)
Global Logistic Properties Limited (“GLP”) is the leading provider of modern logistics facilities in China, Japan and Brazil. Our property portfolio of 21 million square meters (226 million square feet) is strategically located across 62 cities, forming an efficient logistics network serving 700 customers. We are dedicated to improving supply chain infrastructure for the world’s most dynamic manufacturers, retailers and third party logistics companies. Domestic consumption is a key driver of demand for GLP.
The Group 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 (www.cppib.com)
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 18 million Canadian 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 London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2013, the CPP Fund totalled C$183.3 billion, of which C$19.9 billion represents real estate investments. For more information about CPPIB, please visit www.cppib.com.
GLP Investor Relations & Media Contact:
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations
Tel: +65 6643 6372
Email: agoel@glprop.com
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