GLP's Japan REIT to sell up to $1.4 bln in shares

TOKYO Mon Dec 3, 2012 2:51am EST

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TOKYO Dec 3 (Reuters) - GLP J-REIT, a real estate trust set up by Singapore's Global Logistic Properties Ltd, will sell as much as 111 billion yen ($1.4 billion) worth of shares in its initial public offering in Japan, according to a government filing on Monday.

GLP, one of the world's largest warehouse operators, said last month it would sell shares in the REIT, which has 30 properties valued at $2.6 billion, in the IPO. The Singapore firm expects to use the proceeds from the offer mainly for projects in China and Japan.

GLP J-REIT, which will be Japan's largest public real estate trust featuring logistics, said on Monday it would sell the shares at between 59,500 and 60,500 yen a piece, against the expected price of 60,000 yen. The final price will be set on Dec. 12 before the shares start trading on Dec. 21.

GLP J-REIT will sell 1.747 million shares in total, of which 1.105 million shares will be sold in Japan and the rest allocated to overseas investors. The REIT may sell as many as 87,400 more shares, depending on demand.

GLP J-REIT will join Japan Logistics Fund and Industrial & Infrastructure Fund Investment, the two publicly listed real estate trusts in Japan that focus on the warehousing business.

Japan's logistics property market was set to grow as only two percent of warehouse facilities in Japan were modern, Takeshi Akagi, head of research and advisory for Jones Lang Lasalle, said in his presentation last week.

The demand for modern warehouses was set to rise as more companies were outsourcing logistics businesses to cut costs and the volume of internet shopping traffic was increasing, he said.

GLP's REIT debut will follow that of Daiwa House Reit Investment Corp, a real estate trust featuring logistics and retail facilities, that raised about 50 billion yen in its initial pubic offering last month.

($1 = 82.47 yen) (Reporting by Junko Fujita; Editing by Nick Macfie)

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