Singapore-listed Global Logistic Properties Ltd (GLP), which manages a property portfolio of assets valued at $40 billion globally, is undertaking a strategic review of its business options.
This follows a request from Singapore’s sovereign wealth fund (SWF), GIC, specifically GIC Real Estate, the firm’s largest shareholder.
The undertaking a strategic review is aimed at exploring the available options for enhancing shareholder value. GIC, the sovereign wealth fund (SWF) of Singapore, which manages the city-state’s foreign reserves, holds a 36.9 per cent stake in GLP. Meanwhile, Hillhouse owns 8.2 per cent, according to Bloomberg data.
Currently, GLP has a market capitalisaiton of S$10.46 billion ($7.36 billion)
As part of the strategic review, it has constituted a special committee consisting of four independent directors to oversee the strategic review. In addition, it has also appointed JP Morgan (SEA) Limited as its financial adviser to assist on the strategic review.
“As part of the strategic review, the company, through JPMorgan, is in the process of making preliminary approaches to various parties to evaluate the viability of options available for its business,” GLP said on Thursday. However, the company added thta there is no assurance that any transaction will materialise from the strategic review.
GLP has stated that it has not entered into any definitive transaction with any party. Its shares rose last month after a report of takeover interest in the firm, with China Investment Corporation (CIC) reportedly considering a $6 billion takeover bid for the property owner, according to a Bloomberg report from November. This report cited people who claimed to have knowledge of the matter.
According to The Edge Markets, this could be a move aimed at further asset control. A report by The Edge Markets cited the $3.7 billion purchase by GIC ofa European warehouse portfolio without the participation of GLP, hinting at corporate strategies “supplanting further geographic diversification.”
With a bid by an investor consortium that includes the firms like CIC, this could see Beijing seeing such a bid as a strategic move for consolidating control of domestic logistics assets, given China logistics assets form 56 per cent of GLP’s NAV (net asset value). As it is, CIC and Hopu are either partners in GLP’s fund management business, or hold a significant stake in GLP’s China assets.