A warehouse in Jersey City, N.J. PHOTO: BLOOMBERG NEWS
By P.R. VENKAT and JAKE MAXWELL WATTS
Updated Jan. 5, 2017 5:25 a.m. ET
SINGAPORE—Warehousing giant Global Logistic Properties Ltd. is in preliminary talks with various parties to sell itself as one option under a continuing strategic review, the company said Thursday.
Confirming a report by The Wall Street Journal, GLP, which has a market capitalization of $7.5 billion, informed the Singapore Exchange Thursday afternoon that it was looking at a sale as one option. It warned shareholders that there is no guarantee of any transaction and didn’t name the parties it is talking with.
People familiar with the matter said earlier that GLP is seeking interest from various parties by early February.
The company’s stock rose 7.1% on Thursday to its highest level in 18 months after The Wall Street Journal reported that it is exploring a possible sale.
The stock move prompted Singapore Exchange to ask GLP to explain the activity. GLP subsequently halted trading in its stock before confirming that it is in preliminary discussions. The company’s shares will resume trading on Friday morning.
The move for a possible sale of GLP—which is the second-largest warehouse operator in the U.S., after real-estate investment trust Prologis Inc.—was triggered by a request for a strategic review of the company’s options by GLP’s biggest shareholder, Singapore sovereign-wealth fund GIC Pte. Ltd. GIC owns 37% of GLP. GLP tapped J.P. Morgan Chase & Co. to conduct the review.
GLP is one of the world’s largest warehousing and distribution companies, growing in recent years through a series of acquisitions such as an $8.1 billion purchase, with GIC, of U.S. industrial-property owner IndCor from Blackstone Group LP.
GLP also has a substantial China portfolio, valued at roughly $12.8 billion, including facilities in top-tier cities such as Beijing and Shanghai.
Demand for sophisticated logistics operations has grown on the back of the expansion of e-commerce globally. GLP has targeted the U.S. and China, the two biggest online-shopping markets for its expansion. It manages logistics assets valued at close to $40 billion across the U.S., China, Japan and Brazil.
GIC is one of the world’s biggest sovereign funds and has more than one-third of its investments in the U.S. It owns stakes in Citigroup Inc. and UBS Group AG. According to the Sovereign Wealth Fund Institute, GIC oversees about $344 billion in assets, making it the world’s eighth-largest sovereign fund.