Singapore/China JV buys Japan DCs

   Global Logistic Properties (GLP) of Singapore and China Investment Corp. have entered into a joint venture to acquire 15 distribution centers in Japan from LaSalle Investment Management for 122.6 billion yen ($1.6 billion).
   The portfolio of 15 properties to be acquired will have a floor area of 770,989 square meters with more than 90 percent located in the Tokyo and Osaka areas. The current occupancy of the properties is 98.3 per cent with a weighted average lease expiry of 5.6 years. The portfolio comprises facilities with an average age about seven years.
   Ming Z Mei,  chief executive officer of GLP, said, “Demand in Japan continues to come from companies working to become more competitive and are focused on ensuring they have more efficient warehouses. Companies are also rethinking how their supply chains are managed so they can minimize any risk of disruption in the future.”
   GLP said 67 percent of the space being acquired in Japan is used by large third-party logistics service providers and 13 percent is leased by e-commerce companies.
   Mei said the deal will grow GLP’s Japan portfolio 30 percent to 3.6 million square meters, “making our footprint almost 40 percent larger than our next largest competitor.”