Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

GLP Turns Loan Shark in Deal to Buy 10% of Developer Beijing Vantone for RMB 822M

2019/02/24 by Jan Kot Leave a Comment

Ming Mei GLP

GLP boss Ming Mei has picked up 10% of Vantone

Singapore-based warehouse operator Global Logistics Properties (GLP) has acquired a 10 percent stake in Beijing Vantone Real Estate Co Ltd for RMB 822 million ($122 million), according to a statement filed with the Shanghai stock exchange.

Under the terms of the deal, GLP Capital Investment 4 (HK) Limited, a private equity unit of the logistics real estate giant, will acquire 205 million A-shares in the Shanghai-listed developer from its second-largest shareholder, Vantone Holdings, at a price of RMB 4 per share. The transaction will give the warehouse builder a 10 percent stake in the 25-year-old developer.

The share sale, which Vantone say will help to ease financial pressure on the developer, comes after GLP had extended short term loans to the developer with Vantone shares as collateral.

GLP Becomes Vantone’s Third-Largest Shareholder

Following the transaction, GLP will be Vantone Real Estate’s third-largest shareholder, after Jiahua Oriental Holdings, which is controlled by Vantone Real Estate chairman Wang Yihui, and Vantone Holdings, which is also controlled by Wang. Jiahua’s stake in Vantone Real Estate is 35.66 percent and, after the share sale, Vantone Holdings will own 20.30 percent of the listed developer. Together, the two holding companies will still control 55.96 percent of Vantone Real Estate.

Upon the successful transfer of the shares, GLP will have the right to nominate at least one person  independent non-executive director to the board of Vantone Real Estate, with that director also recommended to act as chairperson of the board’s strategy committee.

REIT forum 2022_250 ad

According to local media reports, GLP said via a spokesperson that the strategic investment in Vantone is an endorsement of Vantone’s future development and investment value, with representatives of the firm managed by Chinese-American businessman Ming Z. Mei indicating that GLP will actively support Vantone’s operation and management.

Vantone explained in the statement to the stock exchange that bringing on board GLP as a strategic investor would facilitate the company’s long-term development amd protect the interests of the shareholders while the investment lowers the company’s debt ratio.

Bail-Out Follows 43% Drop in Cash Flow

China Zun Beijing

Vantone had sold its stake in a site next to the China Zun project in Beijing to GLP last year

According to Vantone’s financial report, in the first three quarters of 2018, the company had a net cash flow of RMB 275 million, representing a year-on-year decrease of 46.14 percent. During the same period, the developer’s debt increased 29.35 percent to RMB 4.65 billion.

Vantone’s current assets amounted to RMB 8.11 billion in the first three quarters of 2018, a 20.66 percent decrease from the same period of the previous year. Among its total current assets, the inventory value stood at RMB 4.5 billion, down 32.87 percent from the end of 2017.

Prior to the share sale, on November 23, 2018 Vantone Holdings had pledged 172 million shares in Vantone Real Estate to GLP as collateral for a six month loan and on January 21 had borrowed against another 54 million shares in return for an additional six month loan. The pledges in total accounted for 11 percent of the total shares in Vantone Real Estate.

Last October, Vantone also sold its remaining stake in a Beijing CBD project to GLP for RMB 758 million. The 10,490 square meter Z3 parcel, one block from the newly completed Beijing Citic Plaza (China Zun) in Chaoyang district, was won by a Vantone-led consortium for RMB 2.52 billion in 2010. Due to changes in land use planning and other challenges, Vantone which originally held a 35 percent stake in the prime project, never completed preparation of the site to start construction, Before selling off its remaining stake in the Z3 project last year, Vantone had been forced to sell off 97 percent of its shares in the project to five investors for a total of RMB 1.2 billion.

Industrial giant GLP was delisted from the Singapore Exchange in 2017 after a private equity consortium led by Chinese real estate developer Vanke paid $2.45 billion to acquire a 21.4 percent stake in the company.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: Beijing Vantone Real Estate, daily-sp, Featured, GLP

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

mtd tv sustainable data centres

Efficiency, Design and Green Power Key to Data Centre Sustainability: MTD TV

ESR, JLL, BW and Logos See Logistics Pivot to Developing Markets: MTD TV

More MTD TV Videos

Latest Stories

laurent-jacquemin axa

AXA IM Buys Pair of Tokyo Rental Residential Assets for $54M

sherman kwek CDL

CDL Sees Q1 Sales Fall 41% as Singapore Housing Curbs Bite

245 Park Avenue manhattan new york

HNA Ordered to Pay $185M to Partner in Bankrupt Park Avenue Skyscraper

Sponsored Features

anny zhang jll

Shanghai Life Science Leasing Doubles as Report Shows Future Growth Sponsored Feature

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.