China model offers GLP diversification

GLOBAL Logistic Properties (GLP), which boasts being the leading provider of modern logistics facilities in China, Japan and Brazil, has moved rapidly in recent months to further strengthen its foothold in the vast and growing Chinese mainland market. A notable development was the recent landmark deal for the investment of up to US$2.5 billion from a group of Chinese companies for around a third of its China subsidiary and a small portion of the listed entity.

By bringing onboard key players such as Bank of China Group Investment (wholly owned by Bank of China) and private equity firm Hopu, GLP is tapping deep-pocketed and well-connected players that can help it gain access to land and monetise land reserves.

GLP, which has come a long way since its listing on the Singapore Exchange mainboard in October 2010, has good reason to be focused on the world's second-largest economy. With a population of more than 1.3 billion and a rapidly growing economy, China has a big appetite for logistics space. Current logistics space per capita there is only around 1/12th that of the US.