Former CICC exec Fang Fenglei is among the GLP directors connected to bids for the developer
Formal offers have been made for logistics developer Global Logistic Properties, with the Singapore-based firm announcing that two of its top leaders are among the parties bidding for the $8.9 billion warehouse builder, according to an announcement by the company on Friday.
The bids for GLP, which is the biggest industrial real estate developer in China, come after the company began working with investment bank JP Morgan Chase on a strategic review of its business in December. That review was announced not soon after reports surfaced that Chinese sovereign wealth fund CIC had offered to buy out GLP.
In its statement, GLP did not specify which companies have made offers for its business or where these suitors came from. A report in Reuters cited sources indicating that both global private equity firms and Chinese investment firms had expressed interest. The market capitalisation of the logistics developer has risen to $8.9 billion recent weeks following news of a potential buyout.
Hopu’s Fang Recused From Buyout Discussions
One potential bidder that appears more likely following the announcement is CIC. Among the two GLP officers recusing themselves from the strategic review process because of connections to bids for the company was Hopu Investment Management boss Fang Fenglei. Fang, who acts as a non-executive director of GLP, formerly worked at mainland investment bank China International Capital Corporation Limited (CICC), and his private equity firm has been previously mentioned as a partner in CIC’s bid for GLP, along with Hillhouse Capital Management.
The other GLP officer recused from the strategic review process was CEO Ming Z Mei, as the long-time head of the warehouse developer is also connected to an unspecified offer for the business.
No Deal is Certain at This Point
GLP began the strategic review of its business in December at the request of GIC, which is the developer’s largest shareholder. The Singaporean sovereign wealth fund had pushed for the review process after Bloomberg reported an unsolicited offer for GLP from CIC during November. GLP emphasised on Friday that there is no certainty of a sale taking place.
GLP confirmed in early January that it had begun negotiating a possible sale of the company, without specifying potential buyers. Earlier reports had mentioned US private equity giants Blackstone and Warburg Pincus as rival bidders for GLP, which has extensive operations in Japan and is the second largest operator of logistics facilities in the United States, in addition to its presence in China.
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