Global Logistic Properties (GLP) has taken a 15.5% stake in China’s largest state-owned logistics company.
The Singapore-listed investor has invested CNY2bn (€285m) in the China Materials Storage and Transportation Development Company (CMSTD).
GLP has also entered a 49-51 joint venture with the CMSTD, which is expected to invest more than CNY3.6bn in new projects.
The joint venture is planning to develop 1.3m sqm of logistics facilities across China.
GLP chief executive Ming Mei said the investment in the CMSTD was the largest equity investment in a state-owned Chinese logistics enterprise by a company outside China.
GLP, which entered a strategic partnership with the CMSTD last year, deepened its relationship with the Chinese company by acquiring an equity stake.
At CNY2bn, the transaction comes at a 43% discount to its 9 December traded price.
GLP, now the second-largest shareholder in the Chinese company, has an option to increase its stake in the joint venture to 50%.
It also has priority rights to partner with the CMSTD in redeveloping its existing land and facilities, with right of first look for all future logistics land sourced by the CMSTD.
The deal will give GLP, already the largest logistics operator in China, access to the CMSTD’s land resources, totalling more than 9m sqm.
So far this year, GLP has acquired around $13bn (€11.9bn) in logistics assets and businesses.