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GLP moves investment in Qingdao, Tianjin, to assets in Chongqing, Shenyang
GLOBAL Logistic Properties (GLP) has shifted an investment in Qingdao and Tianjin toward assets in Chongqing and Shenyang, the logistic real estate developer announced on Wednesday after the market closed.
Indirect subsidiaries CLH (35) Pte Ltd and China Kunpeng Infrastructure Pte Ltd each sold 30 per cent of their stakes in Hangzhou Transfar Lixin Logistics Base Investment Development Co to their existing joint venture partner for 162.5 million yuan (S$33.3 million yuan). Hangzhou Transfar is a holding company for Qingdao Transfar Logistics Base Co and Tianjin Transfar Logistics Base Co. GLP carried that 60 per cent stake in Hangzhou Transfar at a book value of 150.6 million yuan as at Aug 31 on its balance sheet.
The same amount that the subsidiaries received from the disposal was used to acquire the remaining 40 per cent of Hangzhou Puxin Logistics Facilities Co, a holding company that owns Chongqing Transfar Logistics Base Co and Shenyang Transfar Logistics Base Co. The book value of that 40 per cent interest was 100.4 million yuan as at end-August.
The transactions are not expected to have any material impact on GLP's net tangible asset and earnings per share in the year ending March 2018.