Singapore-listed Global Logistic Properties (GLP) has confirmed that it has initiated negotiations that could lead to the sale of the company as part of a strategic review of its business. The company’s announcement comes after reports surfaced in November that China’s sovereign wealth fund had offered to acquire the $8.6 billion warehouse builder.
“As one of the options available under the ongoing strategic review, the company is in preliminary discussions with various parties in connection with a possible sale of the company,” GLP said in a filing to the Singapore Stock Exchange on January 5.
“The company wishes to emphasize that no definitive transaction has been entered into by the company with any party and there is no assurance that any transaction will materialise from the strategic review,” the statement pointed out.
Sales Talks Follow Strategic Review
GLP revealed last month that it had retained JP Morgan to conduct a “strategic review of its business,” after Bloomberg reported in November that mainland sovereign wealth fund China Investment Corporation (CIC) had offered to acquire the Singapore-listed warehouse developer. CIC, which ranks as biggest cross-border real estate investor, is already an investor in GLP’s China operation. The fund is reportedly joined in its bid by mainland-based Hopu Investment Management and Hillhouse Capital Management.
As part of the strategic review process, JP Morgan is said to have invited interest from other potential buyers to bid for the multi-continent warehouse business.
GLP’s Global Expansion Could Pay Off
After starting life as an acquisition of the China and Japan businesses of US-based warehouse developer Prologis, GLP has since expanded its business into North and South America and now manages assets valued at close to $40 billion globally. GLP current largest shareholder, Singaporean sovereign wealth fund GIC, is said to have requested the strategic review following CIC’s initial inquiry.
In 2014, GLP made its biggest investment in the US by paying $8.1 billion to Blackstone Group to acquire the IndCor warehouse portfolio. Last month, the Singapore-based company continued its North American expansion by launching a $1.5 billion fund aimed at buying US logistic assets over the next three years.
GLP currently owns and operates a global platform of 52 million square metres, and has some 4,000 customers including e-commerce providers, manufacturers, retailers and third-party logistics companies, according to figures provided by the company.