GLP

GLP: Completed second tranche of China consortium agreement comprising US$875m. The consortium is led by HOPU Investments, with participation by GLP employees. Following the announcement, the consortium now holds a 33.8% stake in the China Holdco. The first tranche of US$1.6b was completed in Jun'14. The additional partners in the second tranche further augments GLP’s access to best-in-class customers and strategic sites, enabling GLP to accelerate its development pace and strengthen its market-leading position across China. In light of Alibaba’s recent IPO, investors are paying more attention to Chinese ecommerce, to which GLP should be a beneficiary. Among its top 10 largest customers in China, GLP boasts customers such as Amazon, VIPshop, JD.com and Alibaba. Meanwhile, GLP’s modern logistic facilities should help it ride the ecommerce boom, which is forecasted to triple to Rmb5.6t by 2017. GLP now trades at 1.2xP/B