SINGAPORE, July 13 — Global Logistic Properties Ltd., the US$9.2 billion (RM39.4 billion) Singapore warehouse operator pursuing a sale, has picked a Chinese bidder consortium for final deal talks, people with knowledge of the matter said.

The investor group, fronted by GLP Chief Executive Officer Ming Mei, edged out a rival consortium led by Warburg Pincus, according to the people. The Chinese consortium, which includes private equity firms Hillhouse Capital Management and  Hopu Investment Management, will now negotiate definitive terms for the transaction, the people said, asking not to be identified because the information is private. 

Under the deal being contemplated, GLP would be taken private through a scheme of arrangement, the people said. The Chinese investor group will seek to obtain an undertaking from Singapore sovereign fund GIC Pte, which owns about 37 per cent of the company, to vote in favor of the offer, according to the people.

GLP is nearing the end of a months-long sale process that’s faced bidder complaints that the management group has an advantage with privileged access to information. If an agreement is reached, the purchase of GLP would become the largest-ever private equity buyout of an Asian company by enterprise value, surpassing last year’s takeover of Qihoo 360 Technology Co., data compiled by Bloomberg show.

"Warehouses in Asia is a fast-growing sector that attracts a lot of interest,” Greg Hyland, head of capital markets at Jones Lang LaSalle Inc. in Singapore, said by phone today. "There’s a substantial undersupply of modern logistics in China, so we’re seeing a lot of growth there.”

Shares of GLP have surged 43 per cent over the past year, making it the best performer on Singapore’s benchmark Straits Times Index, which gained 11 per cent during the period. The company was halted from trading Thursday, pending an announcement.

Representatives for the Chinese consortium and GLP declined to comment, while a representative for Warburg Pincus didn’t immediately reply to emailed queries.

The Chinese investor group had made a binding offer for GLP by the June 30 deadline, while Warburg Pincus submitted an offer that was conditional on getting access to further detailed information about the business, people with knowledge of the matter said last month. Blackstone Group LP didn’t make a standalone bid, though it will consider buying assets from the winner, the people said at the time.

E-commerce companies such as Alibaba Group Holding Ltd. and JD.com Inc. are driving a boom in demand for warehouse space in Asia. GLP said in December that it hired JPMorgan Chase & Co. to advise on a strategic review requested by GIC, its largest shareholder. — Bloomberg