Mainboard-listed Global Logistic Properties (GLP) says it has signed an agreement to acquire a 49 per cent stake in Shanghai Yupei Group – a leading logistics properties provider in China.
In a news release, GLP said the acquisition will cost US$53.6 million (S$65.2 million) and will be done through the 100 per cent equity acquisition of a Hong registered special purpose vehicle Shimmer Profits Limited by Equity International.
“Through this equity acquisition, we will be able to enhance our role as the top developer of logistics by gaining access to Yupei’s asset portfolio in strategic locations within the Yangtze River Delta region of China,” said Mr Kent Yang, managing director of GLP China.
A privately-held industrial developer, Yupei currently holds four completed logistics/industrial parks totalling a net leasable area of 252,943 sq m.
About 40 per cent of its portfolio is within Shanghai’s prime district and near manufacturing bases and the downtown area.
The rest are in Suzhou and Chuzhou.
GLP says it has the option to increase its holding in Yupei to 50 per cent through the acquisition of a 1-per-cent share from its Chinese shareholders.
It can also acquire a 70-per-cent share in three of four of the existing projects.
Source : Today – 10 Aug 2011