SINGAPORE—Global Logistics Properties said Friday it had agreed to a takeover by a consortium that would pay $3.38 (US$2.46) per share. The privatization values the industrial landlord, which controls about 200 million square feet of space in the US, at approximately S$16 billion (US$11.6 billion). Including its US holdings, the GLP platform represents more than 575 million square feet of logistics space, along with US$39 billion in assets under management through its global real estate fund.
GLP announced this past December that it was undertaking a strategic review at the request of sovereign wealth fund GIC Pte. Ltd., its largest shareholder. In a separate announcement, GIC said Friday that it supported the takeover by Nesta Investment Holdings Ltd., a consortium including Hopu Investment Management; Hillhouse Capital; SMG, which is owned by GLP CEO Ming Mei; Bank of China Group Investment; and Vanke.
The Nesta takeover proposal represents a premium of 30% over the NAV per share as of March 30, according to GLP. It's not subject to antitrust approvals or an okay from the Committee on Foreign Investment in the United States, although shareholders representing at least 75% of the company's stock will need to sign off on it. GIC currently controls 36.84% of GLP's stock.
A special committee of four independent GLP directors conducted the strategic review, which led to final bids being received on June 30. “The special committee, with guidance from our financial adviser J.P. Morgan and legal adviser Allen & Gledhill, conducted an in-depth and independent review in order to achieve the optimal result for all shareholders,” says Seek Ngee Huat, chairman of GLP's board, chairman of the special committee and independent director. He says all bids received “an extensive evaluation,” and that the Nesta proposal is “compelling and value-enhancing for all shareholders.” The privatization is expected to be completed by April 2018.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
