GLP’s privatisation price belies China slowdown

Despite a glut of warehouse space, investors are betting big on one of the largest proxies for ecommerce growth in China.

A Chinese consortium’s S$16 billion $11.6 billion privatisation of one of the biggest warehousing companies in China, Global Logistic Properties, is not in sync with the slowdown in the world’s third largest economy.

With China’s economy recording its slowest growth in 25 years, an oversupply of warehousing is already apparent in Tianjin and Chengdu, logistics analysts say.

The Chinese consortium, which comprises private equity firms HOPU and Hillhouse Capital GLP’s chief executive officer Ming Mei and property developer China Vanke, as well as the investment arm of the Bank of China, is betting that this supply-demand-imbalance is temporary.

The logistics sector...

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