GLP J-REIT's Tomiya IV in Sendai, one of the properties acquired from GLP in September 2016. (Photo: GLP)GLP J-REIT's Tomiya IV in Sendai, one of the properties acquired from GLP in September 2016. (Photo: GLP)

Singapore-listed logistics property developer and operator GLP announced on 16 August that it will sell four of its properties in Japan to Tokyo-listed industrial REIT, GLP J-REIT, for JPY42.7 billion (USD420 million).

The properties are namely GLP Atsugi II and GLP Yoshimi located in the greater Tokyo area, GLP Tomiya IV located in Sendai, and GLP Fukaehama sited in the greater Osaka area. GLP is the manager of GLP J-REIT’s properties.

The properties to be sold collectively feature 209,600 square metres of gross floor area and are 100% occupied.

According to a statement by GLP, the sale price of JPY42.7 billion represents a premium of 3% compared to the properties’ latest appraised values and equates to a weighted average cap rate of 4.8%.

GLP said that it expects to realise US$130 million in profit from the property disposals once the transaction is complete in September 2016.

GLP J-REIT, which was listed on the Tokyo Stock Exchange in December 2012 has the right of first look on a further 17 properties worth USD2 billion that is wholly owned by GLP.

Units of GLP REIT finished the trading day 1.7% lower from its previous close on the Tokyo Stock Exchange to end at JPY121,600.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.