GLP Continues Growth With 9.3 MSF of Logistics Leases
- Mar 01, 2018
GLP, a Singapore-based provider of logistics facilities, has signed new leases representing a total of 9.3 million square feet of logistics and warehouse space worldwide during the fourth quarter of 2017.
“The unprecedented growth of e-commerce continues to drive warehouse demand,” Steve Schutte, GLP’s COO, said in a prepared release. “Also, we see brick-and-mortar retailers moving towards multi-channel retail strategies, which further boosts demand for logistics facilities. GLP is well-positioned to support these growth trends by offering both space and technology-led solutions to drive value for our customers.”
GLP’s lease ratio in the United States is currently at 94 percent, with effective rent on total leases up approximately 19 percent last quarter. According to Schutte, GLP US expects the operating environment to remain favorable in the coming year, driven by continued customer demand especially from e-commerce and multi-channel retail operations.
Activity around the world
In December, GLP entered Europe for the first time with the acquisition of Gazeley, which saw 1.6 million square feet of space leased up. Notable leases were signed with two leading online retailers in Germany, as well as with UK Mail and a global retailer in the UK.
Over in Japan, interest in GLP’s logistics facilities was driven by domestic consumption and ongoing reconfiguration of the supply chain. In the country, GLP signed 2.3 million square feet of new leases in the last quarter of 2017, including two in Greater Tokyo—GLP Niiza (ahead of completion) and GLP Kashiwa II, to Daiichi Storehouse & Refrigeration and a fast-growing domestic FMCG company, respectively. GLP also established a dozen new customer relationships.
In China, e-commerce activity drove demand for modern distribution facilities in strategic locations and during the quarter, GLP signed 4.1 million square feet of new leases with leading third-party logistics and e-commerce service customers including BEST Inc., JD.com and SF Express.
Brazil was responsible for another 1.1 million square feet of leases, mostly with companies operating in the pharmaceutical and food storage industries. The most noteworthy were to Raia Drogasil, one of Brazil’s largest drugstore chains, and a leading food wholesaler.
GLP now manages more than $46 billion of assets and its global portfolio includes 636 million square feet spread across eight countries globally.
Last February, GLP boosted its presence in the Midwest with the acquisition of two Chicago industrial assets for a combined $33 million. Not long before that, GLP acquired a large industrial portfolio from Hillwood Development Co. for $1.1 billion, in several phases.
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