GLP aims for US$2 billion of asset sales this year: sources
The moves aim to strengthen the company’s finances and reassure investors before its upcoming IPO
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[SINGAPORE] GLP told some bondholders during meetings in recent days that it aims to sell around US$2 billion of assets this year, according to people familiar with the matter, as the logistics operator prepares for an initial public offering.
The push to shed assets includes talks with Ares Management to sell some international data centres, the people said, asking not to be identified as the matter is private. GLP did not elaborate on other asset disposal plans, they added.
The moves are part of GLP’s broader efforts to strengthen its finances and reassure investors over liquidity ahead of an IPO planned for this year. The company reported last month that it swung to a profit in 2025, partly on the strength of its data centre business.
The earnings report was closely watched as investors sought a clearer view of the company’s finances after a drop in its US dollar bond prices.
In a separate deal last year, GLP agreed to sell GCP International to Ares for up to US$5.2 billion. The latest talks are part of that agreement, and can help GLP qualify for an extra payout, the people said. That is because under the terms of the GCP International sale, GLP can qualify for a payment of up to US$1.5 billion if it meets certain performance targets, according to a notice posted on the company’s website.
GLP still has about US$5 billion of assets outside of China after the sale of GCP International, including data centres and logistics operations, the people said.
GLP has come under pressure in the bond market after credit news provider Octus reported in March that China’s financial regulator had informally advised insurers to limit transactions with GLP’s mainland logistics and asset‑management units.
GLP disputed the report at that time, saying that it had not received any such notification from any regulatory authority and Chinese insurers remain actively engaged in both existing and prospective commitments.
Its US dollar notes due 2028 are currently trading at around 88 cents on the US dollar, rebounding from a March low but still below near-par levels seen earlier this year, according to data compiled by Bloomberg.
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GLP did not offer a comment, Ares did not immediately respond to a request for comment.
Aside from the asset sales push, GLP secured a US$1.5 billion investment from Abu Dhabi Investment Authority in August last year.
GLP was listed in Singapore in 2010, raising S$3.9 billion, before agreeing in 2017 to a S$16 billion buyout – a record for Asia – by a Chinese consortium including private equity firms Hillhouse Investment, Hopu Investment Management and now distressed developer China Vanke. BLOOMBERG
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