Takeover target Global Logistic Properties eyes European expansion

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Nesta Investment, the Chinese consortium making a SGD16bn (€9.96bn) bid for Global Logistic Properties (GLP), announced today that it intends to expand GLP into new markets, potentially in Europe.

In its first public statement on future plans for GLP, Nesta said it has plans to increase the company’s fund management business.

GLP, which has US$39bn (€33bn) in assets under management in the US, China, Japan and Brazil, said it could potentially expand into Europe.

Speaking at GLP’s first-quarter results announcement, GLP’s CEO Ming Mei, who will remain CEO post-takeover, said GLP also intends to set up a China income fund.

He said the company will continue to sell assets in Japan to domestic real estate investment trusts, while expanding into new markets.

Mei said: “I would like to emphasise that our strategy remains the same, and that I will continue to be CEO.”

Nesta expects to take control of GLP after a shareholder vote on its proposed privatisation of the Singapore-listed company.

Singapore’s sovereign wealth fund GIC, the largest shareholder in GLP with an almost 37% interest, has given an “irrevocable” undertaking to Nesta to vote in favour of the scheme.

The Nesta consortium is led by SMG, which is owned by Mei, and includes HOPU, Hillhouse Capital, Bank of China Investment group and Vanke, a Chinese developer.

The consortium made an offer of SGD3.38 per share for GLP in July, following a strategic review of GLP’s future. The review came after market speculation of a sale began late last year.

“The proposed transaction marks a major milestone in the strategic review and the evolution of GLP, although there is still a lot of work to be done and a strict process to be followed until completion,” Mei said.

The takeover is due to be completed by April next year.

GLP also announced that it has completed syndication of its third US portfolio. GLP has brought two undisclosed investors into the partnership and reduced its own holding from 45.9% to 8%. GLP created the US$1.5bn GLP US Income Partners III fund last December.

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