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News Release

Singapore

Jones Lang LaSalle Advises on US$1.6bn Logistics Portfolio Sale in Japan

Acts for LaSalle Investment Management on Sale of 15 Assets to Joint Venture between Global Logistics Properties Ltd and China Investment Corporation


Singapore, 19 December 2011 - Acting on behalf of LaSalle Investment Management, the Jones Lang LaSalle Asia Pacific Capital Markets team has advised on the sale of 15 modern logistics facilities in Japan for US$1.6 billion (JPY122.6 billion).  The buyers, Global Logistic Properties Limited (GLP) and China Investment Corporation (CIC), through their respective wholly-owned subsidiaries, are entering into a 50:50 joint venture to acquire the 770,989 sq. m portfolio.

Over 90% of the Gross Floor Area (GFA) of the portfolio is located within the Greater Tokyo and Osaka areas. Tenants are predominantly large third-party logistics service providers and e-commerce companies.

Stuart Crow, Head of Asia Pacific Capital Markets at Jones Lang LaSalle commented: “As reconstruction efforts continue in Japan, production and private consumption are expected to increase and exports are predicted to rise in line with overseas demand.  We expect the Japanese logistics sector to experience solid growth over the next five years and the industry continues a move towards larger, modern distribution formats.  Supply is somewhat constrained due largely to the scarcity of land available for development, while demand remains robust from companies seeking to move away from traditional smaller facilities and benefit from economies of scale. We see strong demand from institutional investors looking for exposure in the sector.”

The acquisition is expected to be completed in first quarter 2012.

Jones Lang LaSalle has advised on over US$10.3 billion of investment transactions in the Asia Pacific region during 2011, which ranks the firm as the number one advisor in the region (source: RCA).