Global Logistic Property (GLP): to acquire 49% stake in Shanghai Yupei Group, one fo the top 8 largest providers/ developers of modern logistics facilities in China, for US$53.6m. The stake was acquired from Equity International, with GLP having the option to acquire another 1% stake in Yupei, as well as 70% direct stakes in the existing and future project companies of Yupei.
Yupei has 4 existing logistics parks with 253k sm of space in the Yangtze River Delta area, plus a devt pipeline of 10 projects nationwide with planned total GFA of 1.07m sm. JPM estimates the equity value of the Yupei stake at Rmb432 psm.
GLP has been a significant consolidator in China. Since Dec ‘10, the group has acquired strategic stakes in 3 of the 10 largest modern logistics property developers/operators in China. In Dec ‘10, the group announced the acquisition of a 19.9% stake in the parent co of Blogis, as well as a 53% stake in Airport City Ltd. The
group is larger than the next 7 largest players combined in this space in China, and is targeting 1.6m sm of devt starts in China in FY12, which should further extend the group's leadership of China’s market for modern logistics facilities available for leasing.
Another key milestone for GLP may come when the bidding process for Lasalle Invmt
Mgt’s portfolio of 20 logistics properties in Japan closes (GLP has submitted a bid).
JPM has an Overweight rating with TP $3.
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