Monthly Archives: July 2016

What is the activity of Singapore’s GLP on logistic

Singapore-based logistics provider Global Logistic Properties announced Tuesday that it was acquiring a $1.1 billion U.S. logistics portfolio from Hillwood Development Company, expanding its reach in America.

The portfolio totaling 1.4 million sq. meters would help to solidify GLP’s position as “the second largest owner and operator of logistics facilities in the U.S.,” the company said. It would expand GLP’s U.S. footprint to 17 million sq. meters, which in total would make 8% of GLP’s net asset value.

GLP aims to complete the deal for fully leased properties in December this year, worth $700 million. The remaining $400 million are for properties in development that will be acquired in phases.

The transaction would be funded by $470 million of equity and $635 million of debt. GLP intends to retain only 10% of the portfolio and expects to sell on the rest to institutional investors. The company expects to generate a 13% return-on-equity including fees in the first year of investment. It also said that it would fund its equity commitment with cash and existing credit facilities.

GLP has been building its key market in China as e-commerce grew rapidly in the country and boosted demand for logistics centers. Its China facilities make up 57% of its total net asset value, followed by 25% in Japan. Apart from the U.S., its next biggest holdings are in Brazil.

But as China’s growth slows, GLP is ramping up investments in more mature markets such as the U.S. For its financial year ending in March 2017, GLP budgeted only $1.4 billion for new developments in China, a 17.6% fall from the previous financial year.

GLP, together with Singapore’s sovereign wealth fund GIC, entered the U.S. in 2015 with a whopping $8.1 billion acquisition from private equity fund Blackstone Group. Most of GLP’s stakes were eventually sold to institutional investors from Asia and North America. The landmark deal was followed by the purchase of a $4.55 billion U.S. portfolio through a second U.S. property fund established with China Life and other institutional investors. Through these acquisitions, GLP quickly became the second largest owner and operator of logistics facilities in the U.S.

GLP also sees a similar trend in Japan for an increase in demand for large-scale warehouses. It is currently growing its market share in the country. In June, it announced an investment of 23 billion yen ($210 million) to build a warehouse facility in the Ibaraki Prefecture. The company also announced on Monday it was developing a 27,000 sq. meter modern logistics property in Osaka. The $49 million development is expected to be completed around April to June 2018.

Where is the country with the most expensive of nuttella

I spent my first days in Venezuela taking photographs of food. I needed to reassure family and friends. They were surprised – as was I – to see shelves brimming with vegetables, cereal and bread.

There is food in Caracas, the capital. But as inflation pushes prices higher and higher, the food is inaccessible for the majority of people.

The fall of the price of oil, which is the main source of income for the Venezuelan economy, has crushed the country’s ability to import products.

The International Monetary Fund (IMF) is predicting that inflation will hit 700% by the end of the year. The government last published figures for inflation in December 2015, putting it at 180%. It regards the shortages as being caused by an “economic war” waged by the private sector and foreign countries.

Luxury shops have prices much higher than those in Europe or the US.

One delicatessen supermarket stocks only imported goods from Italy, Spain and the US. A jar of the Italian chocolate spread Nutella can reach 15,000 bolivares – $15 (£11) if you sell it on the black market. A 750g jar in a UK supermarket costs about £3.50.

More saliently, it is half the Venezuelan monthly minimum wage.

This is not the fault of the chocolate spread manufacturers but a symptom of a seriously struggling economy.

If you are unable to pay, you will have to queue for hours to get basic goods.

“I haven’t seen sugar in a while,” says Luiz. Fridays are his day for shopping – this is decided by the number on his ID card, in one of the ways the government has tried to deal with the food shortages.

Luiz lives in Petar, one of the poorest areas of Caracas. Every Friday he goes to a supermarket in Santa Fe, a middle class area.

He gets up at 03:00 so he can queue – but that does not guarantee anything. The supermarket may say the delivery did not arrive, or things might run out by the time he gets to the front of the queue, or there might only be soap when he wants sugar.

The Central Venezuelan Bank (BCV) used to publish an official scarcity index. In April 2014 it was at 25.3%. That was the last time the figure was made public.

There are hundreds of jars of tomato sauce, but no pasta. You will find plenty of gel to fix your hair with “cement effect”, but there is no trace of shampoo, necessary to return your hair to its less rigid state.

It is impossible to get cow’s milk. Almond milk is a healthy but expensive alternative.

The government is trying to fight against people who queue and then sell goods at massive mark-ups. It has regulated prices at some supermarkets and prioritised poor people at others.

But while the crisis continues, prices and politics will be the two big conversation topics in Caracas.

What is The Report from Japan

Apple and Google engage in practices that undermine competition in the smartphone app market by making the most of their control over distribution channels, a report by the Ministry of Economy, Trade and Industry argues.

The report looked at how these two U.S. technology giants, as well as others that control platforms through which smartphone applications are sold, use their positions of power to decide what app developers can and cannot do.

Restricting what payment methods developers can accept and limiting their pricing freedom may not directly violate Japan’s anti-monopoly law, but these practices lead to elimination of competitors, the report asserts.

A study group established at the ministry in January compiled the report by incorporating a survey of app developers that was conducted jointly with the Japan Fair Trade Commission.

The so-called Apple tax was an issue covered in the report. The U.S. firm requires that any purchase made through an iPhone application — be it digital content, a service or something else — be processed through the company’s system. Apple then charges roughly 30% of the payment amount as commission. “Apple tax” is the name developers have given to this steep levy.

This practice may be deemed abuse of an advantageous position under the anti-monopoly law, some members of the study group argued at a meeting. The report expressed concern that the monopoly on payment methods will lead to market control that allows the company to eliminate competition.

Restriction of app developers’ freedom in pricing was another issue. Apple does not allow yen-dominated prices to include sub-10 yen (10 yen roughly equals 10 cents) amounts. This means an app that would have been sold at 125 yen must be priced at 120 yen or 130 yen to be offered through Apple’s distribution platform.

The report also criticizes Apple’s handling of refunds as placing an excessive burden on developers. Since the company does not return its 30% commission, developers must pitch in with their own funds to cover the 30% charge to issue a full refund to customers.

The anti-monopoly authority at the European Union and others have been investigating possible abuse of dominant positions by Apple and Google, but the METI report is the first to shed light on payment systems from the angle of possible anti-competition violations.

Japan’s competition watchdog intends to investigate further and “may choose to conduct on-site inspections if there is sufficient suspicion of regulation breach,” a high-ranking official said.