Global Logistic Properties Ltd. fell the most in almost 17 months in Singapore trading after Government of Singapore Investment Corp. said it is selling a stake in the biggest owner of industrial properties in Japan.
Shares of the company, also known as GLP, declined 6.6 percent to S$2.57 at the close in Singapore. The stock had its biggest drop since Oct. 4, 2011. GLP was the worst performer in the Straits Times Index’s property measure, which tracks 39 developers, and slid 1.2 percent.
GIC, Singapore’s sovereign wealth fund and GLP’s biggest shareholder with a 49 percent stake before the stake sale, raised S$1.5 billion ($1.2 billion) by selling 595.7 million shares at S$2.60 apiece, according to details in a term sheet obtained by Bloomberg News. That’s at the lower end of a S$2.60-to-S$2.66 range and a 5.5 percent discount to GLP’s closing price of S$2.75 yesterday, according to another term sheet.
“It looks like a measure of portfolio management by GIC and that they are creating more liquidity,” Donald Chua, a Singapore-based analyst at CIMB Research Pte, said yesterday after the term sheet was sent to investors. “I don’t believe that there is fundamentally anything wrong with the company.”
The stake is about 13 percent of the total shares outstanding of Singapore-based GLP, according to data compiled by Bloomberg. JPMorgan Chase & Co. is the only bookrunner on the sale, according to the term sheet. GLP said it’s also the biggest owner of industrial properties in China and Brazil.
The share sale is part of GIC’s rebalancing of its holdings, the state fund, which manages more than $100 billion of the nation’s reserves, said in an e-mailed statement today, adding that it remains a “substantial” long-term shareholder in the real estate company.
“GIC has been the major shareholder in GLP since its establishment,” the fund said. “We are pleased with the company’s execution of its strategies and are confident of its long-term prospects.”
The block trade went through at 9:12 a.m. in Singapore, according to data compiled by Bloomberg.