‘GLP eyes majority stake in Airport City Development’

Global Logistic Properties (GLP), a unit of the Government of Singapore Investment Corp, is in talks to acquire a majority stake in China’s Airport City Development, people familiar with the matter said yesterday.

Airport City Development, which is 40 per cent-owned by Beijing Capital International Airport (BCIA), is the sole developer of air cargo handling and bonded warehouse logistic facilities for BCIA.

“A deal is likely to be signed soon and an announcement could come within this week,” one of the sources said. Details of the transaction were not immediately available but another source said the acquisition could be through a combination of cash and shares. Of the cash component, GLP may pay around US$300 million ($386 million) for the stake. Citigroup and JPMorgan are advising GLP on the deal, the source said.

Established in December 2004, Airport City Development owns about 800,000 sq m gross floor area in the Beijing airport, divided into five main zones – air cargo terminals, an express centre, a customs supervision area, a bonded logistics centre and an office complex.

GLP owns, manages and leases out 296 properties in 122 logistics parks across 25 cities in China and Japan and has been aggressively looking to expand its activities in the fast-growing China market.

GLP, which raised $3.9 billion in gross proceeds from an initial public offering in October, last month announced the acquisition of a 19.9 per cent stake in Shenzhen Chiwan Petroleum Supply Base as part of the expansion of its logistics business.

Source : Today – 5 Jan 2011

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