Asia's largest logistics provider Global Logistic Properties Ltd (GLP) has tied up with three major investment funds to buy logistic assets in Brazil for 2.9 billion reais ($1.45 billion), expanding its global network into Latin America's largest economy.
Singapore-based GLP, a unit of the island nation's sovereign wealth fund, manages best-in-class warehouses operating in 36 markets across Asia with leading businesses in China and Japan.
In a statement, GLP said that it 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 Brazil's Prosperitas with GLP's initial equity investment of $334 million.
In the first joint venture called 'Stabilised JV,' GLP will team up with CPPIB, CIC and GIC to buy 34 stabilised and one development project. GLP and CIC will each own 34.2 per cent stake in the venture, with GIC holding 20 per cent and CPPIB 11.6 per cent.
The second joint venture 'Development JV' involving GLP, CPPIB and GIC holding stakes of 41.3 per cent, 39.6 per cent and 19.1 per cent respectively, will acquire five development projects.
The total assets to be bought cover nearly 2 million sq m of gross leasable area, 88 per cent of which are located in the main logistics markets of Sao Paulo and Rio de Janeiro.