Troubled China Vanke looks to offload 21.4% stake in Singapore logistics firm GLP as it seeks to ease debt burden
- Vanke has held talks with state-owned investment company Guangdong Holdings and a Tianjin-based state-owned firm to exit its investment, said people familiar
- Vanke purchased the stake in GLP six years ago when the warehouse manager was taken over by a Chinese consortium in a S$15.9 billion buyout
Vanke had held discussions with parties including state-owned investment company Guangdong Holdings and a Tianjin-based state-owned firm to exit its investment, said the people, who asked not to be identified because the matter is private. No agreement has been reached, the people added. Vanke bought a 21.4 per cent stake in GLP for about S$3.4 billion (US$2.5 billion) in 2018.
Shenzhen-based Vanke has become the latest flashpoint in the nation’s property downturn, and is seeking to ease concerns about its ability to avoid default. Last weekend, executives including chairman Yu Liang told brokerages that it is making plans to resolve liquidity pressure and short-term operational difficulties.
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Vanke said at the Sunday investor event that it is willing to sell or pledge any noncore assets for funds as long as terms are appropriate, people familiar said earlier this week, citing management. Some of its regional units are setting up teams for potential asset sales.
