Global Logistic Properties in JV to acquire 2 logistics facilities in Brazil for $1.8b

Global Logistic Properties, the provider of modern logistics facilities in Japan anfd China, says it has signed an agreement to expand its global network to Brazil.

GLP will form two joint ventures with Canada Pension Plan Investment Board (CPPIB), China Investment Corporation (CIC) and Government of Singapore Investment Corporation (GIC) to acquire two portfolios of logistics facilities from Prosperitas for a total initial consideration of BRL2.9 billion ($1.77 billion). GLP’s initial equity requirement is BRL668 million ($408 million).

In the first joint venture known as stabilised JV, GLP will partner with CPPIB, CIC and GIC to acquire a portfolio of 34 stabilised assets and one development project. GLP and CIC will each own 34.2% of the JV, with GIC holding 20.0% and CPPIB 11.6%.

In the second joint venture known as 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%.

88% of the two joint ventures’ combined assets are located in the primary logistics markets of São 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.