Companies

Singapore's GLP to buy stake in Chinese airport logistic firm

(Xinhua)
Updated: 2011-01-05 13:44

SINGAPORE - Global Logistic Properties (GLP), a unit of Government of Singapore Investment Corporation, has said it would buy a 53 percent effective stake in China's Airport City Development Co Ltd at the cost of 2.483 billion yuan ($374 million).

The sellers are Prosper Line Investments and Great Ocean Overseas Holdings, local media reported on Wednesday.

The arrangement will involve two steps. GLP will first acquire the 53-percent stake in Airport City Development from the sellers and then dispose of assets that are non-core to GLP.

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Established in 2004, Airport City Development is the sole developer of the air cargo handling and bonded warehouse logistic facility for Beijing Capital International Airport. It is involved as the main operating entity in the planning, construction and operation management of the Airport City Logistic Park Project.

GLP said in August it had entered with a third party to buy the 53.1 percent stake for about $335 million, with 70 percent the deal financed by the issue of new shares and 30 percent in cash.

The company said the investment advances GLP's strategic position as a provider of air-cargo logistics facilities in China.
GLP now also has investment in logistics in a number of Chinese cities.

The company raised $2.9 billion in an initial public offering in Singapore in October last year.