GLP positioned for growth

Global Logistic Properties ("GLP") is one of the world's largest providers of modern logistics facilities, with a market-leading presence in China and Japan. It owns, manages and leases out 446 completed properties in 187 logistics parks spread across 36 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-Suit and Sale and Leaseback, GLP is dedicated to improving supply chain efficiency to meet strategic expansion goals of the most dynamic manufacturers, retailers and 3rd party logistics companies in the world.

Source: http://www.glprop.com/businessModel.php


GLP had announced plans to invest US$334M to acquire assets in Brazil. Its CEO Ming Z Mei said: "We remain mindful of the global economic conditions, but are confident that our unrivalled market presence in China, Japan and now Brazil positions us well for future growth." 

Source: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1237208/1/.html

Brazil is an emerging economy which of 2011 ranks 6th of the world's largest economies. Its economy is reliant to the export of commodities which includes, coffee, iron ore, oranges, sugar etc. Its major export partners includes US, China and Argentina. 

Source: http://www.bbc.co.uk/news/business-16332115

Currency rate for Brazil remained weak as Brazil’s central bank has sold reverse currency swaps to keep the real weaker than 2 per dollar to support exporters. It sold $1.4 billion of contracts Oct. 25, $1.6 billion Oct. 23, $1.3 billion Oct. 5, $5.7 billion Sept. 12 through Sept. 17 and $350 million Aug. 21. The August reverse swaps were the first since March.

Source: http://www.bloomberg.com/news/2012-11-16/brazilian-currency-extends-its-biggest-weekly-decline-since-june.html

Brazil is an emerging economy with its still weak currency which makes it an attractive place to be invested in. The acquisition from GLP could reflect gains if the Brazilian currency strengthens. 

GLP with its NAV of ~$2.2 last closed at $2.74 at SGX. This stock has positioned itself for future growth and is worth a good look at.