• Three leases totalling 52,600 sqm in Shanghai and a 16,000 sqm lease in Ningbo all cater to domestic consumption in China

・ Seismic isolation is the most advanced technology that helps protect a building’s structure from earthquakes

Singapore/Tokyo, 2 April 2012 – Global Logistic Properties Limited (“GLP”), the market leader in modern logistics facilities in China and Japan, announced that it has developed and obtained a patent for the “GLP Pile Cap seismic isolation construction method”2, a technology that helps protect a building’s structure from earthquakes while significantly reducing construction costs of earthquake resistant logistic facilities. This new construction method will be adopted for the GLP Misato III project, a 94,000sqm large scale multi-tenant logistics facility development located in Greater Tokyo.

Masato Miki, President of GLP Japan said, “The “GLP Pile Cap seismic isolation construction method” makes it possible to achieve high seismic isolation effectiveness at more affordable prices and allows our structures to withstand large earthquakes. As a result, our new patented technology will lower construction costs of the foundation by about 30% and overall construction costs by about 5% as compared to other seismic isolation construction methods.”

GLP is adopting this new construction method for future developments in Japan. These facilities will be equipped with a seismometer that will make it possible to accumulate data to evaluate the degree of seismic shock absorption. This data will be utilised for further developing GLP’s seismic isolation technologies for logistics facilities.

Mr. Masato concluded, “As a leading provider of logistics facilities, GLP will continue to push for the development and management of high-functionality and sustainable logistics facilities to support our customers’ need to maintain business continuity in the event of disasters.”

                                                                             – End –

Appendix

Image for the completion of “GLP Misato III” that will be built using the “GLP Pile Cap seismic isolation construction method”

How the “GLP Pile Cap seismic isolation construction method” works

The “GLP Pile Cap seismic isolation construction method” combines the use of seismic isolation device and flat foundation beams with a semi-rigid connection at pile top to achieve high seismic isolation effectiveness with extremely simplified foundations.

This prevents the seismic force from travelling to the building’s foundations and makes it possible for structures to withstand large earthquakes even with lower construction costs of foundation.


About Global Logistic Properties (www.glprop.com)
Global Logistic Properties (GLP) is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 435 completed properties in 162 logistics parks spread across 33 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-Suit and Sale-and-Leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on 18 October 2010 (Stock code: MC0.SI).

About GLP Japan (www.glprop.co.jp)
GLP Japan is the Japanese arm of Global Logistic Properties, the largest provider of logistics infrastructure in Asia, which manages 84 facilities in 7 cities to cover the major distribution centres of Japan. With a total floor area of more than 3.6 million sqm, GLP Japan is an important infrastructure that supports the lives of people and the economic activities in the city, providing logistics facilities that are highly functional as they are sustainable.

Investor relations & Media Team
Email: investor.relations@glprop.com
Ambika Goel, CFA
SVP- Capital Markets and Investor Relations
Tel: +65 6643 6372
Email: agoel@glprop.com

Aw Jess Sie
Senior IR & PR Manager
Tel: +65 6643 6371
Email: jsaw@glprop.com

Artist’s impression of Ichikawa Shiohama Project

Name of facility: Ichikawa Shiohama Project
Location: Shiohama, Ichikawa city, Chiba prefecture (Greater Tokyo)
Total site area: approximately 53,000 sqm
Total floor area: approximately 121,000 sqm
Commencement of construction: September 2012 (planned)
Completion of construction: September 2013 (planned)

・    Planned development site
The Project is located alongside Tokyo Bay, which is about 15 km from Tokyo’s city centre.  The Project is located near Chidoricho Interchange Exit of the Metropolitan Expressway Wangan Line, providing convenient access to Haneda and Narita International Airports.  Access to the inland areas of Saitama prefecture is also expected to dramatically improve in 2015, when the Takaya Junction of the Tokyo Outer Ring Road opens up. Moreover, the site is walking distance from Ichikawa Shiohama station of JR Keiyo line, providing excellent access for employees.

・   Characteristics of the facility
The Project will be a multi-tenant modern logistics facility consisting 5 floors above ground with a total floor area of 121,000 sqm.

・   Securing business continuity during a disaster
The Project will provide the following advanced features to support the business continuity plans of tenants in the event of natural disasters.  The facility offers advanced features such as:   
・    Seismic isolation structure;
・    Counter-measures for high-tides in the electric room; and
・    Employment of a back-up power supply that makes it possible to use disaster control centres, office lighting, and electricity outlets as well as to preserve the security function of the entire building at the time of a power failure.

・    Environmentally-friendly design
The Project is scheduled to acquire an A-class certification by CASBEE (Comprehensive Assessment System for Built Environment Efficiency) acknowledging that it is an environmentally-friendly logistics facility. CASBEE was introduced to Japan in 2005 as a tool for checking the environmental performance of buildings and is widely used in Japan by construction companies, design offices, real-estate developers and local governments to assess and measure the level of “greenness” of buildings.


About Global Logistic Properties (www.glprop.com)
Global Logistic Properties (GLP) is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 420 completed properties in 145 logistics parks spread across 32 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-suit and Sales-and-leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (Stock code: MC0.SI).

About GLP Japan (www.glprop.co.jp)
GLP Japan is the Japanese arm of Global Logistic Properties, the largest provider of logistics infrastructure in Asia, which manages 84 facilities in 7 cities to cover the major distribution centres of Japan. With a total floor area of more than 3.6 million sqm, GLP Japan is an important infrastructure that supports the lives of people and the economic activities in the city, providing logistics facilities that are highly functional as they are sustainable.

Investor Relations & Media Team
Email: investor.relations@glprop.com
 
Ambika Goel, CFA
SVP - Capital Markets and Investor Relations   
Tel: +65 6643 6372
Email: agoel@glprop.com

n        China 3Q12 EBIT increased 146% year-on-year; Group 3Q12 EBIT grew 27%

n        Strong customer demand driving leasing in China with 1.4 million square metres of new and expansion leases signed year-to-date FY12, up 50% year-on-year

n       1.2 million square metres of development starts year-to-date FY12 in China

n        Further established fund management platform; closed 50/50 joint venture with China Investment Corporation to acquire modern logistics facilities in Japan

n        Issued S$750 million of perpetual bonds; further strengthening GLP’s balance sheet

Singapore, 14 February 2012 - Global Logistic Properties Limited (“GLP”), the market leader in modern logistics facilities in China and Japan, saw increased China revenue of 81% driving overall group revenue up 19% to US$144.7 million for the three months ended 31 December 2011 (“3Q12”). The growth in revenue was driven by the completion and stabilisation of new development projects in China, revenue contribution from the acquisition of Airport City Development Co., Ltd. (“ACL”) as well as translation impact of the Japanese Yen relative to the U.S. dollar.

3Q12 Group EBIT increased 27% year-on-year to US$135 million and 3Q12 Group EBIT (excluding revaluation) increased 12% year-on-year to US$106 million. In China, EBIT (excluding revaluation) rose 65% year-on-year to US$30 million, driven by completion and stabilisation of development projects, lower operating expenses and acquisitions. In Japan, EBIT (excluding revaluation) grew by 3% year-on-year primarily due to the strengthening of the Japanese Yen against the U.S. Dollar.

3Q12 PATMI grew by 3% to US$86 million. The gain in fair value of investment properties amounted to US$24 million and US$5 million for subsidiaries and jointly-controlled entities (net of tax) respectively, driven by stabilisation of developments in China and rental growth. 3Q12 Group PATMI (excluding revaluation) decreased by 7% year-on-year to US$68 million.  Results this quarter were impacted by unrealised foreign exchange losses on JPY assets.    

Mr. Jeffrey H. Schwartz, Deputy Chairman and Chairman of the Executive Committee of GLP said: “Our portfolio continues to deliver solid results. We see sustained leasing momentum in China driven by growing domestic demand. Growth in retail sales in China remained at a healthy pace of 17% over the past year.  Due to the robust demand, we are currently 70% preleased on developments which are being delivered through March 2012. Our balance sheet is well positioned to fund our growth plans. We further strengthened the company’s balance sheet by issuing S$750 million (USD$600 million) of perpetual bonds.”

Operating Portfolio Metrics

GLP continued to see strong operational momentum. For the nine months ended December 31, 2011, new and expansion leases signed totalled 1.4 million square metres in China, an increase of 50% compared to the same period last year. GLP acquired completed properties of 1.3 million square metres (“sqm”) year-to-date in FY12. GLP initiated development starts totalling 250,000 square metres in 3Q12 and 1.2 million sqm year-to-date in FY12.

GLP has presence in 25 major cities across China expanding to the Greater Hefei region, the Greater Jinan region, Langfang and Xi’an in the past quarter. The portfolio encompasses 10.4 million sqm of gross floor area (GFA) with 6.3 million sqm of completed GFA, up 75% from last year while maintaining a high lease ratio of 91%. China’s rents grew at a steady pace up 4.5% in 3Q12 on a same-store-basis.

The lease ratio in Japan remains high at 97%.

Capital Markets Activities

In December 2011 and January 2012, GLP further strengthened the company’s balance sheet by issuing S$750 million (USD$600 million) of perpetual bonds at a 5.5% interest rate. These bonds are redeemable at the company’s option after 5 years. This issue was the first ever rated SGD-denominated perpetual bonds and the largest ever SGD-denominated corporate perpetual bonds transaction. For accounting purposes these bonds will be treated as equity. 

During the three months ended 31 December 2011, GLP refinanced JPY28.9 billion (US$377 million) of debt. Besides lowering interest costs, the debt maturities have also been extended by an average of 3.4 years.

Fund Management Platform

GLP continued to grow its fund management platform with the establishment of the joint venture with China Investment Corporation (“CIC”) to acquire 15 facilities from LaSalle Investment Management. GLP and CIC each hold a 50% stake in the portfolio and GLP is the sole manager. GLP’s equity investment was JPY 21.22 billion (US$272.9 million). The transaction closed 8 February 2012.

GLP also announced its second development project, GLP Soja, as a part of the Japan Development Fund, a 50/50 joint venture with Canada Pension Plan Investment Board (“CPPIB”). GLP Soja, a 79,023 sqm large-scale logistics facility, is 39% preleased prior to starting development with indicative interest of over five times the remaining area.

Mr. Ming Z. Mei, Chief Executive Officer of GLP, said: “Our footprint in China continues to grow and our customer relationships continue to drive new demand for space. Over the past year we have grown our completed portfolio by 75% to 6.3 million sqm while maintaining a solid occupancy rate. GLP is currently in various stages of discussions with customers on 4.0 million sqm of space in China. In the past nine months, new and expansion leased area in China has reached 1.4 million sqm, 50% growth when compared to a year ago. In Japan, GLP is now partnered with CIC and together we have completed the acquisition of 15 facilities. We see growth opportunities in both China and Japan and we will focus on continuing to grow our footprint profitably while extending our value chain of services that help our customers do business better.”

Earnings Call Information

A teleconference for investors and analysts is scheduled on Tuesday, 14 February at 6.00pm Singapore time. The dial in number is +65 6723 9388 and the conference ID is 44069601. A replay for the call will be available under Investor Relations section of our website: www.glprop.com.

For the full Global Logistic Properties Financial Statements announcement, accompanying presentation and supplemental disclosure, please visit our website: www.glprop.com.

About Global Logistic Properties (www.glprop.com)

Global Logistic Properties (GLP) is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 420 completed properties in 145 logistics parks spread across 32 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-suit and Sales-and-leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (Stock code: MC0.SI).

Investor Relations & Media Team

Email: investor.relations@glprop.com

Ambika Goel, CFA

SVP- Capital Markets and Investor Relations   

Tel: +65 6643 6372

Email: agoel@glprop.com

^[1]   The initial public offering of the Company was sponsored by Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan (S.E.A.) Limited (the “Joint Global Coordinators and Joint Issue Managers”). The Joint Global Coordinators and Joint Issue Managers assume no responsibility for the contents of this announcement

^[2]  Revaluation refers to change in fair value of investment properties of subsidiaries and share of changes in fair value of investment properties of jointly-controlled entities, net of deferred tax