GLP Completes First Tranche of China Consortium Agreement & Appoints New Director to Board

GLP Completes First Tranche of China Consortium Agreement & Appoints New Director to Board

GLP is pleased to announce that it has completed the first tranche of its landmark agreement in China. As part of the transaction, Mr. Fang Fenglei has also been appointed as a Non-Executive & Non-Independent Director of GLP and a member of its Investment Committee.

  • China consortium agreement: First tranche of US$1.6bn completed, second tranche of US$875m expected to be completed within the next six months
  • Partnership will enhance access to strategic land holdings, best-in-class customers and increased business opportunities
  • GLP appoints Mr. Fang Fenglei, Chairman of Hopu Investments, as a Non-Executive & Non-Independent Director and a member of its Investment Committee 

 

Singapore, 6 June 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 first tranche of its landmark agreement in China. As part of the transaction, Mr. Fang Fenglei has also been appointed as a Non-Executive & Non-Independent Director of GLP and a member of its Investment Committee.
 

China Consortium Agreement

In February 2014, GLP entered into a landmark agreement with a group of leading Chinese institutions including Bank of China¹, China Life and HOPU Funds. The new partners enhance GLP’s access to land, leasing demand and new business opportunities.

The first tranche of US$1.6 billion comprises US$1.48 billion (24.4%) investment in China Holdco and US$163 million in GLP Listco (1.5% of GLP Listco shares). The second tranche of an investment of up to US$875m in China Holdco is expected to be completed within the next six months. The consortium, with partnership by GLP employees, will own up to a 34.0% stake in China Holdco. Please see the appendix for an overview of the transaction.
 

Appointment of New Non-Executive Director

In connection with closing on the transaction, the Board of GLP has appointed Fang Fenglei as a Non-Executive & Non-Independent Director and a member of its Investment Committee, effective 6 June 2014.

Mr. Fang Fenglei is the Founding Partner and Chairman of HOPU Investments Co. Ltd, a leading private equity investor backed by China’s largest state-owned companies and institutional investors. Mr. Fang is Non-Executive Chairman of Goldman Sachs Gao Hua Securities Company Limited, a position he has held since 2004. Previously, he was Executive Vice President of China International Capital Corporation Limited, Chief Executive Officer of BOC International Holdings Limited and Chief Executive Officer of ICEA Finance Holdings Co Ltd.
 

Mr. Ang Kong Hua, Chairman of the GLP Board, said, “The appointment of Mr. Fang Fenglei will further strengthen the depth and breadth of the GLP Board. His rich experience and strong domestic network greatly enhance GLP’s position as we continue to strengthen our presence as the top logistics solutions provider in China. With the support of our new Chinese strategic partners, we are confident of taking our business to the next level.”
 

Appendix

Overview

Investment by China SOEs and leading financial institutions

Investors

Include Bank of China Group Investment, China Life, HOPU Funds

Investment in

Tranche 1

Tranche 2

Investee

China Holdco

GLP Listco

China Holdco

Investment Amount

US$1.48bn

US$163m

Up to US$875m

Shareholdings in Investee

24.4%

1.5% issued capital

(74,278,292 shares)*

~9.6%

Estimated Closing

6 June 2014

Within 6 months from Tranche 1

*Subsequent to the shares issued 6 June 2014, GLP has a total of 4,834,403,826 shares outstanding.
¹ Bank of China Group Investment Limited, a 100% subsidiary of Bank of China

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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