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Global Logistics Properties Ltd Continues Growing Its Business

uncle sam - USA

Global Logistics Properties Ltd (SGX: MC0) has been one of the most talked about companies in Singapore’s market in recent months. Rumours of a takeover offer that surfaced in late 2016 have pushed the share price of the company up by close to 40% since the start of September.

Although the company, which is also known as GLP, has been keeping mum regarding its possible privatisation, it is certainly not resting on its laurels. Yesterday, GLP announced two acquisitions to further boost its footprint in the US.

According to the announcement, GLP will be buying two logistics properties for a total sum of US$33 million. The two properties, located in Chicago, have a collective floor space of 448,000 square feet (42,000 square metres). Both properties have multiple tenants and are 100% leased. Among the tenants in the properties are large logistics companies such as FedEx, UPS, and USPS.

However, in the grand scheme of things, the two acquisitions are insignificant to GLP’s operations in the US. Prior to the deals, the company’s portfolio of logistics facilities in the country covers 173 million square feet; the two Chicago properties represent an increase in space of just over 0.2%. Yet, the acquisitions  may highlight where GLP is focusing its energies on and where it wants to expand going forward.

GLP also recently completed the syndication of a new fund named GLP US Income Partners III. To date, the fund has a commitment of US$620 million from its investors. The new fund will be focusing on logistics properties in the US.

Even after the aforementioned huge rally in its share price over the past few months, GLP is currently still trading at 1.0 times its tangible book value.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim does not own shares in any company mentioned above.