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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

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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. Photo: Reuters
China Vanke is seeking to sell its entire stake in logistics firm GLP, according to people familiar with the matter, as the state-backed developer seeks to amass cash to stave off a debt crisis.
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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.

Vanke did not immediately offer a comment on Wednesday, while GLP declined to comment. Calls to Guangdong Holdings’ headquarters went unanswered.

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.

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 and delisted from the Singapore stock exchange. The move came as part of a push to build its logistics business as high-end storage became a thriving corner of China’s commercial real estate market.

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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.

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