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China Vanke
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Vanke aims to be world’s largest warehouse operator after GLP takeover

The property developer says its logistics sector currently yields a 6 per cent return

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Vanke vows to become the world’s largest warehouse operator after leading a consortium in a US$11.6 billion buy out of GLP in July. Photo: Bloomberg
Summer Zhen

China Vanke said it was targeting to become the world’s largest operator of warehouses after the Chinese property giant led a consortium to buy out Singapore-listed Global Logistics Properties last month.

“GLP is currently the world’s second-largest logistics property owner with a dominant market position in China. Our goal is to become the world’s No.1 [after the acquisition],”said Zhang Xu, Vanke’s chief operating officer.

The Vanke-led consortium that also comprises Hopu Investment Management, Hillhouse Capital, Bank of China Group Investment and GLP’s chief executive Ming Mei, won the takeover bid for GLP at S$16 billion (US$11.6 billion) in July, in Asia’s biggest-ever private equity acquisition by value.

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Zhang said the new GLP would continue to be led by Ming Mei’s team, which they have full confidence in.

He said he was also optimistic about the synergy between Vanke and GLP.

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“Vanke has footprint in more than 60 Chinese cities and we can bring them the access to land resources in more cities, while GLP has a vast resource of customers,” Zhang said.

Our goal is to become the world’s No.1 [after the acquisition]
Zhang Xu, Vanke
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