August 5, 2010 / 9:05 AM / 8 years ago

UPDATE 2-GIC adds banks for $2-$3 bln logistics IPO-sources

* 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 (Reuters) - 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 told Reuters.

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 billion [ID:TOE66E08A]

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. [ID:nSGE65T09]

“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 Research.

    “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) in 2009.

    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)

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