GLP

GLP: According to The Nikkei, Mitsui Fudosan (8801.TO), a real estate developer plans to spend ¥200b (US$2.27 b) over the 6 yrs through FY17, building about 20 warehouses as it seeks to cash in on the growing popularity of online shopping. Most of the facilities will be in the Tokyo, Nagoya and Osaka metropolitan areas. Mitsui Fudosan hopes to attract online retailers and logistics companies as tenants. The firm wants the new logistics facility business to become a main source of revenue, as it looks to offset slowing demand for houses and office buildings due to Japan's declining population and sluggish economy. It hopes to recoup its investment by eventually selling the facilities as investment properties to REITs, after earning rental income from them. Mitsui’s strategy serves as validation of GLP’s Japanese logistics property development model, given similarities between the two companies. GLP was a first mover in this field, having developed logistics warehouses in Japan, and recently spinning off 30 of its 68 Japanese properties into a J-Reit.