GLP continues capital recycling strategy, selling $278m of assets

GLP continues its capital recycling strategy with the sale of JPY30.5 billion ($278 million) of assets and solar panels to GLP J-REIT.

GLP Japan Development Venture I (GLP JDV I) will sell GLP Soja I and GLP Soja II to GLP J-REIT for JPY25.5 billion ($233 million). The two modern logistics properties are located in Greater Osaka and comprise total gross floor area of 1.7 million square feet. They were completed in February 2013 and October 2015 respectively and are currently 95 percent leased.

GLP is the asset manager and owns a 50 percent stake in GLP JDV I.

GLP will also sell JPY5 billion ($45 million) of solar panels, which are installed on the roof of 13 GLP J-REIT properties.

The transaction is expected to be completed in March 2018.

“The sale of these assets creates considerable value for GLP and our partners,” said Yoshiyuki Chosa, Ppresident of GLP Japan. “Fund management is an important and growing part of our business and we are committed to expanding this platform further through further capital recycling to J-REIT and establishing new funds.”

GLP J-REIT, listed on the Tokyo Stock Exchange in December 2012, is a real estate investment trust focused on operating logistics properties in Japan. GLP is the property and asset manager of the J-REIT.

GLP J-REIT has the right of first look on a 12 properties ($1.4 billion) wholly owned by GLP.