Blackstone, Warburg making moves for GLP

The two New York-based investment giants are forming rival consortiums to launch bids for the $8.5bn logistics specialist.

Blackstone and Warburg Pincus are in the preliminary stages of preparing bids for Singapore-listed logistics developer and landlord Global Logistic Properties (GLP).

Sources close to the matter confirmed to PERE that Warburg has been speaking with banks and potential bidding partners about forming a consortium to bid for GLP. A Bloomberg report adds that Blackstone is also considering an offer.

First round bids are said to be due by early February.

Last week GLP confirmed that it is in preliminary discussions with various parties in connection with a possible sale. In an announcement on the Singapore Stock Exchange (SGX), GLP confirmed a report from the Wall Street Journal that it is looking in to a sale as one option under a continuing strategic review.

Back in early December the firm hired JPMorgan to undertake an independent 'strategic review following a request received from its largest shareholder, the Singaporean sovereign wealth fund GIC Private, after GLP’s stock price rocketed on the back of speculation it is a takeover target following an article published first by Bloomberg.

The report said Chinese sovereign wealth fund China Investment Corporation (CIC) and two Chinese investment firms, Hopu Investment Management and Hillhouse Capital Management, have held talks about making a joint offer to acquire GLP, citing people with knowledge of the matter. However, GLP released a statement at the time denying it is in takeover talks with the consortium.

Warburg Pincus has previously invested in Asian logistics businesses and is a corporate owner of e-Shang Redwood Group (ESR) alongside Sam Zell’s Equity International and the Dutch pension administrator APG Asset Management. ESR is a pan-Asia logistics real estate developer and operator which currently has about $3 billion in equity under management across Asia.

Warburg Pincus also co-founded D&J Industrial Property (China) Investment Limited, a Shanghai-headquartered firm which recently has set up an RMB 10 billion ($1.45 billion; €1.37 billion) industrial real estate fund.

Blackstone owns 171 million square feet in industrial properties with the largest exposure to logistics through its ownership of Logicor, a European logistics business, but was said last year to be reporting a sale that would potentially value the platform, including debt, at €11 billion.

Warburg Pincus and Blackstone declined to comment