SINGAPORE (June 30): Global Logistic Properties, the provider of modern logistics facilities, is selling its 50% share of GLP·MFLP Ichikawa Shiohama to GLP J-REIT for JPY15.5 billion (S$203.8 million).

The sale will “crystallise” JPY4.9 billion of development profit for GLP, representing a 46% development profit margin, says GLP in a Thursday filing.

Located along the Tokyo Bay Area, about 15 km from the city center, GLP·MFLP Ichikawa Shiohama is a 50:50 joint venture project between GLP and Mitsui Fudosan. The 1.3 million sf property was completed in January 2014 and is fully leased to leading global retailers like Rakuten, H&M and Forever 21.

GLP J-REIT, listed on the Tokyo Stock Exchange in December 2012, is a real estate investment trust focused on operating logistics properties in Japan. GLP is the property and asset manager of the J-REIT. GLP J-REIT has the right of first look on a further 20 properties wholly-owned by GLP.

The sale price is in line with the latest appraisal value as of March 31, 2016, and the transaction is expected to be completed in September 2016. Net sale proceeds for GLP are estimated to be JPY7.9 billion, which GLP plans to reinvest into development in Japan.

Yoshiyuki Chosa, President of GLP Japan, said, “This transaction creates considerable value for GLP and highlights the embedded value of our development pipeline. GLP remains committed to its strategy of recycling capital and growing its fund management platform to maximise value for its shareholders.”

Shares of GLP were trading 1.1% higher at S$1.80.