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- GIC Real Estate Invests US$600 million for 80% Stake
- Alliance Fuelled by Growing Demand for Distribution and Logistics Facilities
In line with the growing demand for modern distribution warehousing facilities, GIC Real Estate (GIC RE) has entered into a second strategic partnership with ProLogis in Japan with the establishment of the ProLogis Japan Properties Fund II. ProLogis Japan Properties Fund II has been formed following the success of the ProLogis Japan Properties Fund I that was set up by GIC RE and ProLogis in 2002. GIC RE is investing US$600 million (66 billion Yen) in equity for its 80% stake in the ProLogis Japan Properties Fund II, resulting in a maximum total investment capacity of about US$3 billion (330 billion Yen). Combining both Fund I and II, the joint venture's total investment portfolio could potentially reach US$4.3 billion (473 billion Yen).
Dr. Seek Ngee Huat, President of GIC RE, said, "We are very satisfied with the performance of the first joint venture and we look forward to expanding our relationship. GIC RE invests globally in diverse sectors and places great importance on establishing strategic alliances and long-term relationships with strong local partners, operators, fund managers and service providers. Our investment in this second joint venture fulfils our desire to invest in high-quality facilities through an alliance with the premier provider of distribution facilities globally and is a good fit with our investment and return objectives in Asia."
This strategic relationship has enabled both companies to develop and acquire high quality distribution properties across Japan with a focus on the Tokyo, Osaka/Kobe and Nagoya regions. Like the first fund, ProLogis will continue to provide services such as property and asset management, property acquisitions and dispositions.
This strategic long-term alliance enables GIC RE and ProLogis to capture opportunities arising from the growing leasing demand for new, modern distribution warehousing facilities. This demand is driven by the need for companies to improve the efficiency of their distributions systems by revamping their supply chain networks and relying more heavily on third party logistics providers. Given the attractiveness of the distributions and logistics property sector, ProLogis' market position and ability to secure good deal flow in Japan, and GIC RE's market knowledge, network and reputation within the Japan market, and solid financial support, both partners are confident about the future success of ProLogis Japan Properties Fund II.
Mr. Jeffrey H. Schwartz, Chief Executive Officer of ProLogis, said, "We are very excited to further strengthen our alliance with GIC RE, a leading global real estate investor. This is clearly a reflection of our success with the initial fund, which we formed just three years ago. Through innovative development and strategic property acquisitions, our talented team of over 57 local nationals has built ProLogis into the leading provider of distribution space in Japan, with a platform of distribution facilities totalling approximately 7.8 million square feet of space and another 5.7 million square feet planned and under development. We look forward to building upon this success with GIG RE."
GIC Real Estate ("GIC RE") is the real estate investment arm of the Government of Singapore Investment Corporation ("GIC"), which manages the foreign reserves of Singapore. GIC RE's mandate is to invest in real estate-related assets outside of Singapore. Its investments cover all property sectors (including office, retail, industrial, hotel or residential assets) and product types, ranging from direct building acquisitions, property investment funds to strategic stakes in publicly-listed property companies, joint ventures and real estate debt. GIC RE's large and diversified portfolio comprises about 140 assets in over 30 countries. It is one of the largest institutional investors in Asia and currently ranks amongst the world's top 20 global real estate investment firms. GIC RE's assets in Japan currently include Shiodome City Center, Shinagawa Seaside Towers, Kawasaki Tech Centre, three Oakwood serviced apartment complexes and the Aeon Sendai Tomiyacho Mall.
ProLogis is a leading provider of distribution facilities and services with 321.3 million square feet' (29.9 million square meters) in 2,079 distribution facilities owned, managed and under development in 76 markets in North America, Europe and Asia. ProLogis continues to expand the industry's first and Iargest global network of distribution facilities with the objective of building shareholder value. The company expects to achieve this through the ProLogis Operating System@ and its commitment to be 'The Global Distribution Solution' for its customers, providing exceptional facilities and services to meet their expansion and reconfiguration needs.
About ProLogis Japan Properties Fund I
- Prologis Japan Properties Fund I was established in June 2002.
- ProLogis Japan Properties Fund I was an exclusive 80:20 alliance between GIC Real Estate and ProLogis.
- Prologis Japan Properties Fund I has achieved to date, investments in 16 distribution facilities covering over 550,000 square metres across the targeted markets of the Tokyo, Nagoya and Osaka/Kobe regions.
- The current total investment portfolio for Fund I is approximately US$1 billion (110 billion Yen).
Fund I is expected to be fully invested by the end of 2005 with 18 properties (covering over 700,000 square metres) and a total investment portfolio of US$1.3 billion (143 billion Yen)
About ProLogis Japan Properties Fund II
- ProLogis Japan Properties Fund II is established in September 2005.
- ProLogis Japan Properties Fund II is an 80:20 alliance between GIC RE and Prologis.
- GIC RE is investing US$600 million (66 billion Yen) in equity to ProLogis Japan
Properties Fund II
- The maximum total investment capacity for Fund II is significantly higher at about US$3 billion (330 billion Yen).
- Combining both Fund I and II, the joint venture's total investment portfolio in Japan could potentially reach US$4.3 billion (473 billion Yen).
For further information, please contact:
Debra Wang
Edelman
DID: 6347 2324
Fax: 6733 5550
E-mail: debra.wang@edelman.com
Serene Ng
Edelman
DID: 6347 2321
Fax: 6733 5550
E-mail: serene.ng@edelman.com
Ms Tan Chor Hwa
Executive Vice President
Administration and Corporate Affairs
GIC Real Estate Pte Ltd
168 Robinson Road #37-01
Capital Tower
Singapore 068912
Tel: (65) 6889 8888 (Main)
Fax: (65) 6889 6812
Website: www.gicre.com
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