Singapore-based Global Logistics Properties Ltd (GLP) has gained a 53% stake in Airport City Development Co Ltd (ACL), the developer of Beijing Capital International Airport's (BCIA) airside cargo and bonded Logistics Park.

The logistics giant, which has a portfolio of 296 properties across Japan and China paid Prosper Line Investments Limited and Great Ocean Overseas Holdings Limited an initial S$274 million for the core assets of ACL, consisting of 30% in cash and 70% shares, with an additional cash payment of S$119 million at close of the sale.

Commenting on the acquisition, Ming Mei, CEO of GLP said: "This acquisition positions GLP as a leader in the buoyant air cargo sector in China. BCIA is one of the largest airports in the world and has experienced a 17% CAGR growth in cargo throughput from 2005 to 2009.

"With our investment into ACL, we now have facilities within an airport perimeter in a bonded zone and this is a major step forward for us. This makes us stronger as an owner and manager of logistics facilities in Beijing and allows us to further enhance our 'network effect' to the benefit of our customers."

Phase one of ACL's Airport City Logistics Park, consists of 280,000sqm of cargo and warehouse facilities beside the second runway of BCIA and within the Beijing Tianzhu Free Trade Zone, it currently serves major freight companies, including GLP's existing customer FedEx, allowing the acquistion to dovetail with GLP's existing holdings.

A GLP statement describing the sale suggests it still plans to go ahead with the completion of the logisitics park, with 513,000sqm of new facilities including cargo terminals, an express centre, warehouses and bonded logistics centre and office complexes in the pipeline.

By Oliver Clark