Buyout target GLP to develop Adidas' largest distribution centre in Asia

An Adidas logo is seen at the new Futurecraft shoe unveiling event in New York, on April 6, 2017.
An Adidas logo is seen at the new Futurecraft shoe unveiling event in New York, on April 6, 2017. PHOTO: REUTERS

SINGAPORE - Global Logistic Properties (GLP), the target of a S$16 billion takeover by a Chinese consortium, has signed an agreement with Adidas to develop  an 83,000 sq m distribution centre - the sports company's largest distribution in Asia.

Adidas is doubling its space at the same park in Suzhou, Eastern China to meet strong demand from growing domestic consumption, GLP said in a pre-market exchange filing on Tuesday (July 18).

It added that the build-to-suit project with Adidas, comprising three double-story buildings, will be its first LEED (Leadership in Energy and Environmental Design) Gold standard facilities in China. LEED is a globally recognised standard for measuring the performance of green buildings.

Mr Victor Mok, co-president of GLP China, said: "This build-to-suit project with Adidas exemplifies how we are able to leverage our strategic local partnerships to acquire scarce land resources to meet customers' needs in prime locations.

"The project also reflects strong growing demand of logistics facilities to serve organised retail and domestic consumption. GLP looks forward to supporting these growth trends in China."

GLP, last week accepted a Chinese consortium's offer of S$3.38 per share in cash to buy out the company and take it private. Mainboard-listed GLP's largest shareholder is Singapore sovereign wealth fund GIC with a 37 per cent stake.

If it goes through, the deal will be the largest private equity buyout of an Asian company by enterprise value, surpassing last year's takeover of Chinese Internet security company Qihoo 360 Technology.

The buyer group comprises Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.

GLP now owns and runs a US$41 billion (S$56 billion) portfolio of 55 million sq m of warehouses and other logistics facilities in China, Japan, the United States and Brazil.