GLP links up with equity investment arm of Chinese bank
Singapore
GLOBAL Logistic Properties' (GLP) has entered into a strategic partnership deal with China Development Bank Capital (CDB Capital) to become its major partner for logistics infrastructure development.
The Singapore-listed logistics facilities provider said on Wednesday that the move would enhance its access to land and financing resources.
CDB Capital is the equity-investment and asset-management arm of China Development Bank (CDB), the largest developmental financial institution in China and the country's primary financial institution for promoting infrastructure development and urbanisation.
CDB Capital invested in GLP China via the second tranche of GLP's China consortium investment completed on Sept 24, 2014. Like the bank, it is actively involved in China's urbanisation and infrastructure development projects together with local municipalities.
Fan Haibin, the president of CDB Capital, said: "Logistics infrastructure is a policy priority for the Chinese government, with domestic consumption expected to be the economy's main growth driver going forward.
"GLP's unrivalled expertise in logistics network planning, development and management of modern facilities provides an ideal platform to enable this growth."
CDB, as a bank, is the primary medium- to long-term investment and financing services provider in China. It is committed to supporting national infrastructure, basic industries, pillar industries and national-priority projects, and to promoting coordinated regional development and urbanisation.
As at the end of June, CDB's total assets totalled about RMB 9.9 trillion (S$2.1 trillion). In the first half of 2014, it made about RMB 683.2 billion in urbanisation-oriented loans.
GLP has a portfolio of 27 million sq m of logistics facilities such as warehouses in China, Japan and Brazil. Its counter ended at S$2.70 on Wednesday, down two cents.
