Logistics major GLP has picked up a 10 per cent stake in Chinese real estate firm Vantone Holdings to further expand its business in China, according to a stock filing by Vantone on Wednesday.
Based on the disclosure, Shanghai-listed Vantone will sell 205 million A shares to GLP Capital Investment 4 (HK), a subsidiary of GLP, for 822 million yuan ($122.2 million). The deal will see GLP emerge as the third largest shareholder in Vantone.
Founded in 1993, Vantone operates real estate businesses across China and has net assets of 7.8 billion yuan ($1.16 billion) as of last June.
GLP has over $50 billion in assets under management. It was delisted from the Singapore Stock Exchange in January 2018 following an $11.6-billion privatisation deal led by a private equity consortium comprising Nesta Investment Holdings, a vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.
Last May, it launched its debut private equity fund that is seeking to raise 10 billion yuan ($1.5 billion) to invest in the logistics ecosystem. The fund, Hidden Hill Modern Logistics Private Equity Fund, will be managed by its PE platform Hidden Hill Capital.
The fund has the backing of Chinese insurance companies including China Post Capital and other institutional investors.
Earlier in 2018, it also set up its first China value-add fund, GLP China Value-Add Venture I, with a total equity commitment of $1.6 billion. GLP claims to be the largest owner and operator of modern logistics facilities in China, with a 30 million square meter portfolio across 38 strategic submarkets. Its clientele in China includes BEST Inc., BMW, JD.com and LF Logistics.