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The Government of Singapore Investment Corp’s real estate arm may list its logistics business in an initial public offering (IPO), according to reports.
The possible listing in Singapore will involve Japanese assets of GIC Real Estate, including ProLogis Holdings, which provides distribution facilities.
The IPO could take the form of an industrial real estate investment trust (REIT) and is estimated to value between US$500 million and US$1 billion.
"Floating a REIT-like structure will enable GIC to raise funds for new investments, as well as earn fees from outside investors, following in the footsteps of sovereign funds such as Abu Dhabi and China Investment Corp. It will deepen the REIT segment in Singapore as well," said Song Seng Wun, regional economist of CIMB.
Depending on the market conditions, observers speculate that the listing could take place later this year.
Two years ago, GIC had bought the property funds of ProLogis in Japan and its China operations for US$1.3 billion. Analysts believe the move is part of GIC Real Estate’s initial plan to lessen its risk exposure to its large stake in ProLogis.
GIC’s spokesperson refused to give any comment.
GIC is one of the world’s top-10 real estate investment firms. It has 200 investments in more than 30 countries. It invests globally in real estate and real estate-related assets outside Singapore.