13 September 2016
Acquisition OverviewExpand Fund Management Platform
GLP to acquire a US$1.1bn high quality portfolio of assets from Hillwood
Initial closing of a US$700m portfolio expected in December 2016
Further US$400m development portfolio to be acquired in phases upon completion and lease-up
GLP will be the asset manager with total expected equity commitment of US$47m
Expect to sign with capital partners by initial closing with GLP retaining a 10% stake post- syndication1
Attractive Returns
Accretive transaction expected to generate a 13%2 year one ROE (including fees) for GLP
Portfolio is being acquired at a going-in cap rate of 5.7%
Long-term, low-cost fixed-rate debt locks in attractive returns for GLP
High Quality Portfolio Solidifies
GLP's US
Presence
GLP leverages existing platform to pursue enhanced network benefits in the strongest US markets
GLP solidifies position as the 2nd largest owner and operator of logistics facilities in the US
15 million sf portfolio one of the highest quality logistics real estate portfolios in the US
Fully leased with long WALE of 9 years and strong tenant base
Concentrated in desirable locations expected to benefit greatly from e-commerce
Note:
Syndication is subject to customary regulatory approvals in investors' respective home countries and the US (as applicable)
Determined using, among other things, estimates of fund management fees and rental income 2
Accretive Opportunity for GLP- US$1.1bn transaction is expected to be funded by US$470m of equity & US$635m of debt
-
GLP's 10% equity stake of US$47 million is expected to generate first year ROE of 13%1
Long-term, low-cost fixed-rate debt locks in attractive returns for GLP
Financing Structure2
Equity CommitmentGLP's 10% equity stake of US$47m to be funded by cash on hand and existing credit facilities
GLP expects to sign with capital partners by initial closing in December 2016
Total Equity US$470 million
Total Debt US$635 million
Financing Details57.5% Loan-to-Value
Initial Closing: 12-year fixed-rate loan at 3.5%
Future Closings: 5-year revolving credit facility
Note:
Determined using, among other things, estimates of fund management fees and rental income 3
Any discrepancy between sum of individual amounts and total is due to rounding
Favorable Acquisition StructureFavorable acquisition structure locks in long-term tenants while eliminating lease-up risk
Transaction demonstrates GLP's ability to leverage existing platform to pursue enhanced network benefits in the strongest markets
Portfolio being acquired from Hillwood is one of the highest quality logistics real estate portfolios in the US
Hillwood is a premier property developer in the US sponsored by Ross Perot, Jr.
Acquisition Portfolio | ||
Initial Closing Portfolio | Future Closing Properties |
US$700 million completed portfolio to be acquired in December 2016
10 million sq ft of newly built Class A, state-of- the art logistics facilities
100% occupied; 80% of customers are investment grade credit or public companies
US$400 million development portfolio to be acquired in phases
5 million sq ft of brand new Class A, state-of-the art logistics facilities
Subject to completion and satisfaction of stringent lease-up metrics
4
Global Logistic Properties Limited published this content on 13 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 September 2016 23:45:03 UTC.
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