(Registration No. 200715832Z) (Incorporated in Singapore on August 28, 2007)
FINAL SYNDICATION OF STAKE IN PROPERTIES IN THE UNITED STATES OF AMERICAGlobal Logistic Properties Limited (the "Company" and together with its subsidiaries, the "Group") refers to the announcements dated 29 July 2015, 5 November 2015, 5 April 2016, 24 May 2016 and 16 June 2016 (the "Announcements") in relation to the acquisition of a portfolio of industrial assets in the United States of America (the "Target Portfolio"), the initial syndication of an interest of approximately 65.66% in the Target Portfolio, and the further syndication of two separate interests of approximately 9.95% and 9.09% respectively in the Target Portfolio which are not yet completed.
In this regard, the Company wishes to announce that New Western Holdings, LLC, an indirect wholly- owned subsidiary of the Company, has on 12 July 2016 entered into agreements with a new co- investor1 (the "New Co-Investor"), pursuant to which the Company will further syndicate an interest of approximately 5.45% in the Target Portfolio (the "Third Additional Syndicated Interest") to the New
Co-Investor for an aggregate cash consideration of US$108,000,000, subject to post-closing adjustments (the "Third Additional Syndication"). The consideration was determined on a willing- buyer, willing-seller basis, taking into account, inter alia, the Company's acquisition cost for the Third Additional Syndicated Interest.
The Third Additional Syndication is subject to, inter alia, customary closing conditions that are commercially acceptable to the Company and the New Co-Investor.
As stated in the Announcements, the Company will ultimately retain an approximate 10% stake in the Target Portfolio after the entire syndication process is completed, following the closings of the syndications referenced in the announcements dated 24 May 2016 and 16 June 2016 and this Third Additional Syndication.
As at 31 March 2016, the consolidated book value and net tangible asset value attributable to the Third Additional Syndicated Interest was US$108,936,000. The difference between this amount and the cash consideration includes the portion of interim net cash generated by the Target Portfolio, from the date of acquisition of the Target Portfolio until the date of closing of the Third Additional Syndication, which is attributable to the Third Additional Syndicated Interest. Such interim net cash will be retained by the Company.
The Third Additional Syndication is in the ordinary course of the Group's business. Affiliates of the Company will continue to manage the Target Portfolio. In view of the foregoing, the Third Additional Syndication would not fall within the scope of transactions under Chapter 10 of the Singapore Exchange Securities Trading Limited Listing Manual.
1 The New Co-Investor is separate from and non-affiliated with the Company and the existing co-investors.
The Third Additional Syndication is not expected to have any material impact on the net tangible asset value and earnings per share of the Company for the financial year ending 31 March 2017.
None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the Third Additional Syndication, save for their respective interest, through their shareholdings and/or directorships, as the case may be, in the Company.
By Order of the Board of
GLOBAL LOGISTIC PROPERTIES LIMITED
Ming Z. Mei
Chief Executive Officer 12 July 2016
Global Logistic Properties Limited published this content on 12 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 July 2016 10:48:10 UTC.
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