Global Logistic Properties Limited (GLP), a market leader in modern logistics facilities in China and Japan, announced on February 24th that it has entered into a joint venture with Suzhou New District Bonded Logistic Center Development Co., Ltd. (“SND BLCD”) to jointly develop the GLP Park SND which will service logistics tenants in Suzhou, Jiangsu Province of China.
Mr. Ming Z. Mei, Chief Executive Officer of GLP said: “This new venture will further strengthen our portfolio in Suzhou by addressing demand for modern logistics facilities driven by fast-growing domestic consumption. GLP is well-positioned to tap our portfolio and capital resources to service a diverse customer base. This will further enhance GLP’s scalability and network effect, and simultaneously reinforce our market leadership position in China.”
As planned, GLP Park SND, consisting of 1,000,000 square meters of land in SND, is located in the Suzhou National New & Hi-Tech Industrial Development Zone in southeast of downtown Suzhou, a neighbouring city of Shanghai, GLP will own 90% of the new venture while the remaining 10% will be owned by SND BLCD. a wholly owned entity of the Suzhou government. Phase I of the project will accommodate new, modern logistics facilities with expected total gross floor area (GFA) of approximately 200,000 square meters. GLP Park SND will serve as a distribution hub and a premier, fully integrated logistics park accommodating manufacturing and domestic consumption needs for those seeking to enhance their supply chain efficiency in Suzhou region and greater Shanghai area.
Under the joint venture, which is in GLP’s ordinary course of business, the total expected investment is US$200 million. With phase I development of approximately 200,000 square meters of logistics facilities, GLP’s estimated investment amount will be US$90 million.
The announcement marks GLP’s sixth development in Suzhou since 2004. The cooperation of the new venture with SND BLCD will further strengthen GLP’s partnership with the local government. GLP currently owns and manages over 441,032 square meters of logistics facilities in the Suzhou region and has been providing modern logistics facilities to companies from a wide range of industries covering retail, e-commerce, automotive logistics, electronic manufacturing and including Adidas, L’Oreal, Joyo-Amazon, Unipart and Samsung. As of December 2010, the stabilized portfolio was 96% occupied.