425: LatAm Logistic Properties Announces Landmark $43 Million Lease Agreement in Peru

LatAm Logistic Properties (LLP) has secured a ten-year lease agreement in Peru with a leading food and beverage company, projecting rental revenue of over $43 million.

Summary

• LatAm Logistic Properties (LLP) has signed a significant lease agreement in Peru with a globally-renowned food and beverage company.
• The lease is for 239,000 square feet, representing approximately 65% of Building B300 in the Latam Callao Logistic Park.
• The ten-year lease is projected to generate over $43 million in rental revenue, making it LLP's highest value contract to date.
• The lease will commence in June 2025.
• The Latam Callao Logistic Park is strategically located near the Jorge Chvez Airport.
• Building B300 is designed to meet high efficiency and sustainability standards, aiming for EDGE, LEED GOLD, and AIS certifications.
• LLP and TWOA, a special purpose acquisition company, announced a business combination agreement on August 15, 2023, to create a publicly traded logistics real estate company.
• The ordinary shares of the combined entity, Logistic Properties of the Americas (Pubco), are expected to be listed on the New York Stock Exchange.
• As of September 30, 2023, LLP's portfolio consisted of 28 logistic facilities in Colombia, Peru, and Costa Rica, totaling over 650,000 square meters of gross leasable area.

Sentiment

Score: 8

Explanation: The announcement is positive due to the significant lease agreement and the progress towards becoming a publicly traded company. The focus on sustainability and strategic location further enhances the positive outlook.

Positives

• The $43 million lease agreement is LLP's highest value contract to date, demonstrating strong demand for their logistics facilities.
• The strategic location of the Latam Callao Logistic Park near the Jorge Chvez Airport enhances its appeal to multinational companies.
• The focus on sustainability, as evidenced by the pursuit of EDGE, LEED GOLD, and AIS certifications for Building B300, aligns with current market trends.
• The planned business combination with TWOA will create a publicly traded entity, potentially increasing access to capital and enhancing LLP's growth prospects.

Risks

• The completion of the business combination with TWOA is subject to shareholder approvals and other customary closing conditions.
• The forward-looking statements in the press release are subject to various risks and uncertainties, including economic, business, and competitive factors.
• Delays in obtaining necessary regulatory approvals could impact the timing of the business combination.
• The inability to obtain financing to complete the Business Combination could impact the completion of the business combination.

Future Outlook

The company anticipates future growth through the development and acquisition of high-quality, strategically located facilities in its target markets, leveraging strong customer relationships and insights.

Management Comments

• Esteban Saldarriaga, CEO of LLP, stated that the lease agreement solidifies LLP's position as a premier provider of industrial real estate solutions in the region.
• Esteban Saldarriaga, CEO of LLP, highlighted the growing demand for modern, well-equipped logistics facilities in emerging markets like Peru.

Industry Context

This announcement reflects the increasing demand for modern logistics facilities in emerging markets like Peru, driven by the growth of e-commerce and the need for efficient supply chain management. The strategic location of the Latam Callao Logistic Park near the airport positions LLP to capitalize on this trend.

Comparison to Industry Standards

• Prologis and GLP are global leaders in logistics real estate, and LLP's focus on sustainability and strategic locations aligns with industry best practices.
• The target certifications (EDGE, LEED GOLD, AIS) for Building B300 demonstrate a commitment to high standards comparable to those of leading logistics developers worldwide.
• The $43 million lease agreement is a significant achievement for LLP, indicating its ability to compete for large-scale projects in the region.

Stakeholder Impact

• Shareholders of TWOA will vote on the proposed business combination.
• The lease agreement will create jobs and economic activity in Peru.
• Customers of LLP will benefit from the modern, well-equipped logistics facilities.
• Employees of LLP may experience new opportunities as the company grows.

Next Steps

• Completion of the business combination with TWOA, subject to shareholder approvals and other customary closing conditions.
• Listing of Pubco's ordinary shares on the New York Stock Exchange.
• Continued development and acquisition of high-quality logistics facilities in target markets.
• Building B300 completion scheduled for June 2025.

Key Dates