Equity International sells Yupei stake to GLP for $53.6m

The private investment firm of Sam Zell and Gary Garrabrant has exited its investment in the company behind China’s fifth largest industrial portfolio to Jeff Schwartz’ Global Logistics Properties.

Equity International (EI) the private investment firm of Sam Zell and Gary Garrabrant has exited its investment in Shanghai Yupei Group, a logistics business, to Singapore-listed Global Logistics Properties (GLP).

Having entered into a binding agreement to sell to GLP its 49 percent stake in Yupei last month, the firm announced today it completed the transaction.

Global Logistics Properties, the Asia-focused logistics development and investment business led by ex-ProLogis chief executive and chairman Jeff Schwartz, has inherited through the deal exposure to the fifth largest “international quality” warehousing and distribution portfolio in China. It is the latest transaction in the firm’s strategy to add an increasingly large Chinese platform to its already sizeable presence in Japan.

The portfolio comprises assets with “critical proximity to Shanghai’s key business and manufacturing districts” EI said in its announcement. It includes 252,943 square metres of logistics space across four completed industrial parks, GLP said in a separate announcement last month.

In its own announcement, GLP said it would make the acquisition by buying a special purpose vehicle based in Hong Kong called Shimmer Profits Limited. While the deal gives GLP an initial 49 percent stake in Yupei, it also includes options to buy a further 1 percent in the company and separately, a 70 percent share of three of the four parks.

GLP said it was attracted to the deal as Yupei had “a sound track record in project management and construction cost control” as well as a strong deal pipeline.

Kent Yang, managing director of GLP in China, said: “Through this equity acquisition, we will be able to enhance our role as the top developer of logistics by gaining access to Yupei’s asset portfolio in strategic locations within the Yangtze River Delta region of China. It also creates a partnership between GLP and Yupei in logistics facility development providing us a wider platform to gain synergies in land sourcing and operations.”

“The acquisition is complementary to GLP’s existing portfolio. With the access to Yupei’s quality portfolio and multiple-location developments, GLP will be able to better serve our customers and meet the market demands for logistics facilities in the growing consumer market,” Kent Yang added.

“We are delighted that Global Logistic Properties and the market recognise the value of Yupei’s strong brand and reputation for execution,” said Christopher Fiegen, chief portfolio officer of Equity International. “This transaction represents a strategic move for both companies, and Yupei’s high-quality portfolio will enhance Global Logistic Properties’ leading platform.”