Vanke-Led Group Offers Record Price to Take Over Global Logistic Properties

A Chinese-led group emerged as the preferred bidder to acquire Singapore-listed Global Logistic Properties Ltd. (GLP) for $11.6 billion, a record price for an acquisition in Asia.

The buying consortium is 21.4% owned by Vanke Real Estate (Hong Kong) Co.; 21.3% by private-equity firm HOPU Investments; 21.2% by another private-equity firm, Hillhouse Capital; 21.2% by SMG Eastern Ltd., a company personally owned by GLP’s current CEO, Ming Z. Mei; and 15% by an investment arm under Bank of China, according to a joint statement from the companies Friday.

The buyers proposed to pay S$3.38 ($2.46) for each GLP share before taking the company private, the statement said. The offer price represents a 25% premium above GLP’s last-traded price of S$2.70.

The proposed acquisition will require approval from GLP’s shareholders and the Singapore High Court. The deal is expected to close by April 14, the statement said.

In November, Singapore’s sovereign-wealth fund, GIC, the largest shareholder of GLP with a 36.8% stake, appointed a special committee to conduct a strategic review of the warehouse builder, including the possibility of selling.

Sources said the special committee recommended picking the Vanke-led offer over a rival bidding group that included U.S. private-equity firm Warburg Pincus LLC and retailer Suning Holdings Group. They said they preferred the Vanke-led group for its high offer price, as well as the fewer conditions that it attached to the deal.

GIC has said it supports the Vanke-led group’s proposed takeover.

The joint statement did not say if the proposal has any antitrust concerns.

GLP is Asia’s largest logistics property company with assets of $39 billion. It owns or leases a total area of 530 million square meters (5.7 billion square feet) of warehouses and logistics-storage facilities. The company also derives stable income from its own $40 billion investment fund.

Sources said Vanke started considering the acquisition around the Lunar New Year holiday in late January. Vanke expanded into warehouse properties in China after forming a logistics joint venture with Blackstone Group in 2015. Industry sources said the deal will create synergy value for GLP and Vanke in warehouse building and leasing in Asia.

Contact reporter Aries Poon (ariespoon@caixin.com)