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Singapore-based Global Logistic Properties (GLP), an industrial property owner with a market value of US$7.9 billion, is courting would-be buyers, reported The Business Times.
In December, the firm announced a strategic review that piqued the interest of investors. It sent out an information letter to select bidders during the same month, with first-round offers due by early February, said insiders who asked not to be named as the information is private.
If a transaction occurs, it could become one of the largest acquisitions in Asia Pacific, further boosting the US$215 billion of property-related deals recorded over the past 12 months that involved firms from region, Bloomberg data shows.
On Thursday (5 January), GLP’s stock price climbed by up to 9.4 percent, the largest intraday gain since July 2015, before trading was stopped.
Last month, GLP announced that it hired JPMorgan Chase & Co to help in the strategic review of options to boost shareholder value, at the behest of GIC, its largest shareholder. In line with this, it has created a special committee consisting of four independent directors to take charge of the matter. However, there’s no certainty it would result in a deal. GIC, which oversees Singapore’s foreign reserves, has a 37 percent stake in GLP.
According to a presentation shown to analysts this week, GLP owns and operates a global property portfolio spanning a total of 53 million sq m that is collectively worth US$40 billion.
In particular, it has US$10.5 billion of assets in Japan and US$12.8 billion in China, as well as real estate in Brazil and the US. It is also considering venturing into select new markets, such as the UK and Europe. Last year, it purchased US$1.3 billion of assets, revealed Bloomberg data.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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