* IPO of GLP could raise as much as $3 bln in Oct IPO
* IPO could be biggest in Singapore since SingTel in 1993
* GLP owns logistic properties in China and Japan
(adds analyst quote, Mapletree deal)
By Saeed Azhar and Kevin Lim
SINGAPORE, Aug 5 Singapore sovereign wealth
fund GIC [GIC.UL] has added three banks as joint bookrunners
for the upcoming IPO of its logistics unit that could raise as
much as $3 billion, two sources familiar with the deal said.
The three bookrunners -- UBS UBSN.VX, China International
Capital Corp (CICC) and DBS (DBSM.SI) -- will help in the
listing of Global Logistic Properties (GLP), which owns
warehouses in China and Japan, sources familiar with the deal
GLP's initial public offering could be the biggest in
Singapore since Singapore Telecommunications (STEL.SI) raised
over S$4 billion in 1993, exceeding the $2 billion raised in
CapitaMalls' CMAL.SI November 2009 listing.
The listing comes during a hectic period for Asia's primary
equity market with American International Group (AIG.N) trying
to list its Asian life insurance business in Hong Kong
[ID:nSGE66T0WV] and following the massive IPO by the
Agricultural Bank Of China (1288.HK)(601288.SS) of over $20
During the fourth quarter, Mapletree, which is backed by
Singapore state investor Temasek, is planning a $700 million
listing of an industrial real estate investment trust.
"There is still demand for property assets and it's a good
time as well to sell assets because capital value is still
firm," said Meenal Kumar, property analyst at OCBC Investment
"We have kind of seen some earnings recovery in terms of
rent and occupancy."
The three bookrunners will join Citigroup (C.N) and
JPMorgan (JPM.N), which were appointed as joint global
coordinators as well as bookrunners for the IPO earlier this
year, said the sources, who declined to be named because the
deal has not been made public.
UBS and DBS declined to comment while CICC was not
immediately available. GIC also declined comment.
GLP holds industrial and logistic properties in China and
Japan which GIC's real estate unit bought from ProLogis (PLD.N)
According to GLP's website, the firm is Asia's largest
industrial and logistics infrastructure provider with 60
logistics parks in 18 major Chinese cities.
The listing will allow GIC, also known as Government of
Singapore Investment Corp, the world's No.4 sovereign fund, to
build a warchest for further investments, the sources said.
GIC, with an estimated $300 billion in assets, has been
actively participating in deals in recent months after it
reduced its exposure to equities at the start of the global
credit crisis. (Additional reporting by Daniel Stanton at IFR
Asia and Eveline Danubrata; Editing by Valerie Lee)