Business / Companies

Consortium to invest $2.5b in logistics firm

By Dai Tian ( Updated: 2014-02-19 16:07

Global Logistic Properties Ltd, the leading warehouse operator in China, Japan and Brazil, will receive up to $2.5 billion investment from a Chinese consortium including Bank of China's investment unit.

The transaction is expected to widen business opportunities with strategic partners, which include a large insurance company, Bank of China Group Investment Ltd and HOPU Funds, backed by China's largest State-owned companies and institutional investors, GLP said in a statement on Tuesday.

The consortium will invest up to $2.35 billion through subscribing new shares in GLP's Chinese subsidiary, which account for a 34 percent stake. In addition, they will invest $163 million through buying new shares in GLP's listed entity, the statement said.

"There is huge potential to improve the efficiency of the logistics industry in China, driven by the critical lack of modern logistics facilities," Ming Mei, co-founder and CEO of GLP, said in the statement, adding that the strategic partnership will strengthen GLP's local presence and solidify its leading role in the country.

GLP's portfolio in China has grown at a 67 percent compound annual growth rate since fiscal year 2005 and has 8.7 million square meters of completed facilities, the statement said. The company expects the Chinese logistic market to exceed $2.5 trillion.

Consortium to invest $2.5b in logistics firm


Consortium to invest $2.5b in logistics firm


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