GLP J-REIT to Raise Up to 23 Billion Yen in Tokyo Share Sale

GLP J-REIT, a Japan logistics trust that debuted in December, plans to raise as much as 23 billion yen ($231 million) in an additional share sale in Tokyo to acquire properties and to repay debt.

The real estate investment trust will acquire nine properties for 56 billion yen, it said in a statement to the Tokyo Stock Exchange today. The REIT’s Singaporean sponsor, Global Logistic Properties Ltd., separately said it plans to sell two properties in Japan for $287 million to the trust it partly owns.

The growth of Japan’s logistics market, helped by a boost in e-commerce transactions, has attracted companies including GLP to Japan’s warehouse industry. Investments in industrial space returned 5.8 percent on average for the year ended April, more than double the returns from investing in office buildings, according to London-based Investment Property Databank Ltd.

GLP will sell the properties at a 1 percent premium to the appraised value, the company said in an e-mailed statement today. The sale will be completed by March 2014 and net cash proceeds from the property sale are estimated at 13.6 billion yen, according to the statement.

GLP also plans to reinvest the capital to maintain its 15 percent stake in the J-REIT as well as developments in China, Japan and Brazil, the company said.

Separately, GLP Japan Income Partners I, which is 33.3 percent owned by GLP, sold 7 assets to the J-REIT for 27.5 billion yen. The sale will be completed in October, GLP said.

Shares of Global Logistic increased 2.2 percent to S$2.81 at 3:54 p.m. in Singapore trading. GLP J-REIT was 1.9 percent higher at 96,000 yen at the close of trading in Tokyo.

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