China-Based Investment Consortium to Acquire One of the Largest Industrial Property Owners in the World with U.S. Holdings Totaling 173 Million SF in 32 Markets
Global Logistic Properties Ltd. (SGX:MC0), one of the largest owners of industrial properties in the world, has accepted a proposed take-private buyout offer from a group of investors that includes Ming Z. Mei, the CEO and an executive director of the firm.
The investment group buying GLP, Nesta Investment Holdings MidCo Ltd., is owned by a consortium including HOPU Investment Management, Hillhouse Capital Management, Bank of China Group Investment, real estate investment firm China Vanke Co., and SMG, which is 21% owned by Mei.
The offer of S$3.38 in cash per share exceeded GLP’s opening stock price before the announcement of S$2.72/share. The value of the deal in US dollars equates to $11.64 billion.
Singapore-based GLP owns about 562 million square feet of logistics facilities in 113 cities in China, Japan, Brazil and the U.S. Its U.S. holdings total 173 million square feet in 32 markets. The company is one of the world’s largest real estate fund managers, with assets under management of $39 billion.
GLP said the proposed acquisition will require approvals from shareholders and The High Court of Singapore. However, the company said its offer is not conditional on receiving any antitrust approvals, including from the Committee on Foreign Investment in the United States (CFIUS), or any third party consents and fund management consents.
The long-expected deals marks the conclusion of the process announced in December 2016 after GLP essentially put itself up for sale at the request of the firm’s largest shareholder, GIC Pte. Ltd., Singapore’s sovereign wealth fund.
In February, GLP disclosed that its CEO had an interest in one of the parties that had submitted a non-binding proposal, as did Fang Fenglei, a non-executive and non-independent director. GLP said both executives had removed themselves from the firm’s internal review process.
GLP decided the proposed offer was superior due to its significant premium to historical prices, with fewer conditions to the bid and greater certainty that it would be completed within a defined timeframe.
Morrison & Foerster is representing GLP in the proposed transaction, with a cross-border team led by Singapore-based partners Eric J. Piesner and Shirin Tang.