Warehouse Operator GLP is Multi-billion Buyout Target

Singapore-headquartered warehouse operator Global Logistic Properties (GLP) is the target of what, local media reports claim, could become Asia’s biggest buyout deal.

GLP's large-scale warehouse in Chiba Prefecture, Japan.
GLP's large-scale warehouse in Chiba Prefecture, Japan.

Since Bloomberg News first reported takeover interest in GLP last November, the company’s shares have soared 46%, valuing it at US$11.3 billion including debt. At that level, a purchase of the industrial property owner would be the largest-ever buyout of an Asian company, surpassing last year’s takeover of Qihoo 360 Technology Co, Bloomberg data show.

Three bidders
Three private equity groups are working on bids for Global Logistic Properties by an early February deadline, according to people familiar with the matter. Blackstone Group LP is considering going head-to-head with a Warburg Pincus consortium and Chinese retailer Suning Holdings Group Co is rumoured to have held exploratory talks about the possibility of joining one of the bidder groups pursuing GLP.

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Warehouse space triggers new goldrush era
An acquirer of GLP would be able to take advantage of a boom in demand for warehouse space from e-commerce companies like Alibaba Group Holding and JD.com, Bloomberg reported.
Following the Bloomberg report in November, that mainland sovereign wealth fund China Investment Corporation (CIC) had offered to acquire the Singapore-listed warehouse developer, GLP said last month it would conduct a strategic review of options to improve shareholder value. CIC, which ranks as biggest cross-border real estate investor, is already an investor in GLP’s China operation.
GLP manages a portfolio of 53 million sqm of logistics properties, with assets in China, Japan, the U.S. and Brazil, according to its website.

Nol van Fenema

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