Global Logistic Properties (GLP) said it is in talks about a possible buyout - an announcement that came on a day when the firm requested a trading halt and was queried over a surge in trading activity and its share price.It told the Singapore Exchange (SGX) that "it is in preliminary discussions with various parties in connection with a possible sale of the company".
The Singapore-based company sent out an information letter to targeted bidders at the end of last month and has asked for first-round offers by early February, according to the people. GLP attracted interest from suitors after announcing a strategic review in December, one of the people said, asking not to be identified because the information is private.
GLP is often identified as the second-largest owner of distribution centers in the United States. It is the biggest such player in China, Japan, and Brazil.
The Singapore sovereign wealth fund currently owns a significant portion of the company. In December the Chinese sovereign wealth fund evidently made an unsolicited inquiry regarding a potential purchase, prompting the current move to solicit bids.
In both the United States and China the rapid expansion -- and unique operational requirements -- of ecommerce, has prompted a boom in demand for distribution facilities, especially those immediately proximate to dense urban areas.
The forthcoming bids will be a good signal of whether sophisticated investors perceive that demand will continue to exceed supply or if a property bubble is developing.
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