UPDATE 2-Singapore's Global Logistic Properties bets $1.4 billion on Brazil

Wed Nov 14, 2012 7:51am EST
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* Teams up with CIC, GIC, Canada fund

* Set to buy $1.4 bln Brazil assets

* Follows Australian rival Goodman in entering Brazil

* Shares up 55 pct this year, second best index performer

By Charmian Kok and Anshuman Daga

SINGAPORE, Nov 14 (Reuters) - Singapore warehouse operator Global Logistic Properties Ltd is teaming up with large institutional investors to buy $1.4 billion of assets in Brazil as it looks to sustain its strong pace of growth.

Developers such as GLP, one of the world's largest warehouse operators, are looking to tap robust demand for high-quality warehouses in Brazil. Last week, Australian competitor Goodman Group also announced plans to develop logistic assets in Brazil through a joint venture.

GLP, which owns warehouses in Japan and China, will form joint ventures with the Canada Pension Plan Investment Board (CPPIB), China Investment Corp and Government of Singapore Investment Corp to buy 40 properties worth around $1.4 billion in the Latin American country.

"Brazil is the next hot spot," said Kian Lin Ong, an analyst at Maybank Kim Eng. "Investors are always looking for growth. Japan is more or less stable and in China I guess the growth is moderating. So, Brazil is a logical choice."   Continued...