ESR and Mei’s consortium battle it out for GLP

e-Shang Redwood and the investor consortium led by GLP’s chief executive Ming Mei are the final two shortlisted bidders, PERE has learned.

e-Shang Redwood (ESR) and the consortium led by Global Logistic Properties’ (GLP) chief executive Ming Mei are understood to be the final two shortlisted bidders battling it out for the Singapore-listed logistics powerhouse.

PERE has learned from people familiar with the sales process that ESR, the entity formed out of a merger between the Redwood Group and e-Shang, is still in the bidding fray, competing with the consortium that includes Beijing-based private equity firms Hopu Investment Management, Hillhouse Capital Group, and the Chinese property developer China Vanke.

In a stock exchange announcement made this morning, GLP said that the firm received firm proposals from shortlisted bidders for final evaluation on June 30. GLP also continues to maintain that all proposals remain non-binding and are subject to regulatory approvals and other conditions.

GLP declined to comment further.

The ultimate winner would take ownership of one of the world’s largest logistics operators. GLP has a global portfolio of 55 million square meters across China, Japan, US and Brazil, and its fund management platform has $39 billion in assets under management.

For ESR, a potential takeover of GLP, would instantly propel it to the number one position in the Asian logistics market, second only to Prologis and Goodman Group globally.

The sales process started 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.

However, the strategic review has come under criticism in recent weeks, with press reports revealing some of the bidders’ reservations with regards to Ming Mei’s bid, who they believe has an unfair advantage in the sales process. Blackstone was also believed to have been on GLP’s shortlist, but the reasons for it to drop out is not known.

GLP, in a previous announcement, has maintained that the review process is being carried out independently and it has put measures in place to alleviate any potential conflict of interests.