Global Logistics Properties Expands Global Platform to Brazil
Global Logistic Properties (GLP), the world second largest owner of industrial properties, has announced plans to expand its global network into Brazil, to create the country’s largest logistics platform.
Singapore based GLP, which currently operates in 36 markets across Asia, has tied up with three major investment funds to buy logistics assets from Brazilian company Prosperitas, for $1.45 billion USD.
GLP will form two joint ventures to complete the project, collaborating with the Canada Pension Plan Investment Board (CPPIB), the China Investment Corporation (CIC) and the Government of Singapore Investment Corporation (GIC) to acquire two portfolios of logistics facilities, named ‘Stabilised JV’, and ‘Development JV’.
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In the first joint venture (“Stabilized JV”), GLP will partner with CPPIB, CIC and GIC to acquire a portfolio of 34 stabilized assets and one development project. GLP and CIC will each own 34.2% of the Stabilized JV, with GIC holding 20.0% and CPPIB 11.6%.
In the second joint venture (“Development JV”), GLP will partner with CPPIB and GIC to acquire a portfolio of five development projects. GLP will own 41.3% of the Development JV, with CPPIB owning 39.6% and GIC 19.1%.
In an online statement, GLP outlined the two deals, which includes assets of nearly two million square ft of gross leasable areas, 88 percent of which is located in the main logistics markets of Sao Paulo and Rio de Janeiro, which together generate greater than 40% of Brazil’s GDP..
GLP will act as the asset manager of the acquired properties. The existing on-the-ground 40-person team, with considerable local experience, will continue to be in charge of day-to-day operations, as well as building GLP’s platform in Brazil.