GLP Completes Second Tranche of China Consortium Agreement

GLP Completes Second Tranche of China Consortium Agreement

GLP is pleased to announce that it has completed the second tranche of its landmark agreement in China. In February 2014, GLP entered into a US$2.5 billion agreement with a group of Chinese SOEs and leading financial institutions led by HOPU Investments.

  • Completed second tranche of China consortium agreement comprising US$875 million
  •   Strategic partners include China Life Insurance Company Ltd., China Development Bank International Holdings Limited, China Infrastructure Partners, L.P. (part of Bank of China International Group), China Post Insurance, Boyu Capital, HOPU Fund II and other Chinese companies
  •     Additional partners further augment GLP’s access to best-in-class customers and strategic sites

 

Singapore, 24 September 2014 – Global Logistic Properties Limited (“GLP”), the leading provider of modern logistics facilities in China, Japan and Brazil, is pleased to announce that it has completed the second tranche of its landmark agreement in China.
 

In February 2014, GLP entered into a US$2.5 billion agreement with a group of Chinese SOEs and leading financial institutions led by HOPU Investments. Following the announcement today, the consortium, with participation by GLP employees, holds a 33.8%1 stake in China Holdco.
 

The first tranche of US$1.6 billion was completed in June 2014. The second tranche of US$875 million was completed today with strategic partners including:

·         China Life Insurance Company Ltd.
·         China Development Bank International Holdings Limited
·         China Infrastructure Partners, L.P. (part of Bank of China International Group)

·         China Post Insurance
·         Boyu Capital and
·         HOPU Fund II

 

The additional partners in this tranche further augment GLP’s access to best-in-class customers and strategic sites, enabling GLP to accelerate its development pace and strengthen its market-leading position across China. The price of the new China Holdco shares was determined by the latest quarter net asset value of China Holdco and its subsidiaries.
 

Jeffrey H. Schwartz, Chairman of the Executive Committee said, “We are already seeing accelerating momentum in our China business through the landmark agreement which provided us with a unique opportunity to partner with a group of Chinese SOEs and leading financial institutions. Leveraging their customer relationships and excellent access to well located land, we have been able to establish a number of very significant partnerships and acquire several large-scale, strategic sites. We remain confident in our ability to ramp up growth to strengthen our market-leading position in China.”
 

Fang Fenglei, Founding Partner and Chairman of HOPU Investments said, “We are pleased to lead the Investor Consortium to complete the investment in this world-class company. HOPU, along with all the Chinese strategic partners, will be dedicated to help GLP develop and move to the next level of success.”
 

Since the agreement was announced, GLP has strengthened its position as the country’s top logistics solution provider through partnerships with several leading Chinese domestic corporations such as China Materials Storage and Transportation Development Company (“CMSTD”), Sinotrans, COFCO, Bank of China, Jinbei Automotive and Guangdong Holdings.
 

Ming Z. Mei, Chief Executive Officer of GLP said, “The China consortium agreement represents an important milestone for GLP’s future growth. Our partnership with these top-tier Chinese institutions provides the three factors we believe are critical to solidify our market leadership: access to land, access to customers and access to capital. As demand for modern logistics facilities in China continues to grow, our partners will be key in helping us ramp up growth in terms of land acquisitions, development starts and leasing. We look forward to capitalizing on the significant growth opportunities in front of us.”

 

Appendix

Overview

US$2.5 billion   Landmark Agreement in China – Investor Consortium Takes Up 33.8% Stake in   China Holdco

Investors

Includes China Life   Insurance Company Ltd., China Development Bank International Holdings Ltd,   Bank of China Group Investment Ltd, China Post Insurance, Boyu Capital, HOPU Fund   II and other Chinese companies

Investment in

Tranche 1

Tranche 2

Investee

China Holdco

GLP Listco

China Holdco

Investment Amount

US$1.48bn

US$163m

US$875m

Shareholdings in Investee

21.3%2

1.5% issued capital

(74m shares)

12.5%2

Closing Date

Closed on 6 June 2014

24 September 2014


About Global Logistic Properties (www.glprop.com)

Global Logistic Properties Limited (“GLP”) is the leading provider of modern logistics facilities in China, Japan and Brazil. Our property portfolio of 25 million square meters (272 million square feet) is strategically located across 63 cities, forming an efficient logistics network serving 700 customers. We are dedicated to improving supply chain infrastructure for the world’s most dynamic manufacturers, retailers and third party logistics companies. Domestic consumption is a key driver of demand for GLP.
 

The Group is listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker: GLPL.SI; Bloomberg ticker: GLP SP).

 


GLP Investor Relations & Media Contact:

Ambika Goel, CFA

SVP- Capital Markets and Investor Relations   

Tel: +65 6643 6372

Email: agoel@glprop.com

 

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1 Breakdown provided in Appendix

2 Based on the post-closing shareholding structure