Global Logistic Properties Ltd., a unit of the Government of Singapore Investment Corp., is preparing an initial public offering of its Japanese warehouse assets that may raise about $1 billion, said three people with knowledge of the matter.
The company, known as GLP, may list the real estate investment trust in Tokyo by mid-2012, said two of the people, who declined to be identified as the process is private. It has hired Citigroup Inc., Goldman Sachs Group Inc. and Nomura Holdings Inc. to manage the offering, they said.
The IPO may be the largest by a REIT in Japan since Nippon Commercial Investment Corp. raised 121 billion yen ($1.5 billion) in 2006, data compiled by Bloomberg show. The Tokyo Stock Exchange REIT Index has climbed 12 percent this year, as optimism about a U.S. recovery bolstered Japanese stocks.
GLP manages 69 logistics facilities throughout Japan with a combined 2.8 million square meters of floor area, according to its website. In December last year, the company teamed up with China Investment Corp. to buy 15 Japanese warehouses for 122.6 billion yen from LaSalle Investment Management. The proposed IPO would not include those properties, one of the people said.
In September, GLP said in a statement that it had considered options including setting up a “real estate corporation in Japan,” adding that it hadn’t made any decision on whether to pursue such a move. The release came in response to a Reuters article saying the company was planning an IPO of Japanese assets. An outside spokeswoman for GLP referred to the September statement and declined to comment further.
GLP raised S$3.5 billion ($2.8 billion) in October 2010 in what was at the time Singapore’s biggest IPO since 1993.