GLP to List in Hong Kong as Early as Q2, Targeting Over US$1 Billion in Funds; Computing Power Business Emerges as New Growth Driver

ZC Asia has learned that Prologis, the global logistics and new infrastructure giant, is once again rumoured to be planning a Hong Kong listing. Market sources indicate that this industry titan, with assets under management of approximately $80 billion, could submit its listing application to the Hong Kong Stock Exchange as early as the second quarter of 2026, initiating its long-planned IPO process with a fundraising target of no less than $1 billion (approximately HK$7.8 billion). Sources familiar with the matter disclosed to media that GLP has appointed Citigroup, Deutsche Bank, Jefferies and Morgan Stanley as arrangers for its IPO, with the listing entity highly likely to be its much-anticipated China operations.

According to GLP China's latest operational data released on 9 March, while its traditional logistics warehousing business maintained resilience in 2025, its computing power centre operations have emerged as a new growth engine.

Data indicates that in 2025, GLP China achieved an annual total of 32 million square metres in new leases and renewals for its logistics warehousing and manufacturing R&D infrastructure, representing approximately 10% year-on-year growth. Supported by domestic demand, nearly 90% of these industrial spaces serve the domestic market. However, the most striking development was the explosive growth of its computing power centre business: with the deepening development of artificial intelligence and the digital economy, Prologis' revenue from this segment surged by 32% year-on-year, with delivered IT load exceeding 420 megawatts (MW). The company successfully pioneered new models for transforming older logistics parks into computing facilities and upgrading general-purpose computing to intelligent computing. Projects in locations such as Changshu and Dongguan were either delivered or rapidly converted in 2025.

Concurrently, the new energy business—the third pillar of GLP's ‘new economy’ strategy—accelerated its expansion. By the end of 2025, its cumulative new energy development capacity exceeded 3 gigawatts (GW), with 845 megawatts (MW) newly connected to the grid during the year. The company also actively developed green value-added services such as green certificate trading.

This business expansion was accompanied by significant capital operations. In August 2025, the Abu Dhabi Investment Authority (ADIA), a Middle Eastern sovereign wealth fund, invested US$1.5 billion in GLP, elevating its role from a long-standing fund partner to a strategic investor. Furthermore, GLP's computing power centres opened to external strategic investment for the first time, securing a RMB 2.5 billion investment from Zhejiang State-owned Assets, which became a strategic shareholder. The entry of these ‘national teams’ and international sovereign funds not only provided Prologis with valuable liquidity but also endorsed the prospects of its new economy business.

Underlying Concerns Emerge: High Leverage, Declining Rents and Shareholder Uncertainty

Behind the impressive operational figures, the financial and operational risks facing Prologis warrant vigilance.

Firstly, high leverage remains a sword of Damocles hanging over GLP. On 29 August 2025, international rating agency Fitch affirmed GLP's long-term foreign currency issuer rating at “BB” with a “Stable” outlook, but subsequently withdrew the rating after GLP opted to cease participation in the rating process. In its pre-withdrawal report, Fitch noted that despite strategic investments enhancing liquidity, GLP's leverage ratio—measured by net debt to adjusted EBITDA—remained elevated at 15 times. The agency emphasised that sustained and timely execution of asset monetisation strategies is crucial to underpinning its deleveraging trajectory. This indicates GLP continues to bear significant debt reduction pressure, with future cash flows inevitably channelled towards debt servicing.

Secondly, core assets face downward pressure on rental income, with operational challenges remaining severe. While GLP's overall operational metrics appear robust, its publicly traded REIT product—CICC GLP Warehouse Logistics REIT—reveals a contrasting picture. A research report published by CICC in September 2025 indicated that the REIT continued to face operational pressures in the first half of 2025. Under a strategy of sacrificing price for volume, underlying asset rents declined (contracted rents at the end of the period fell by 11% year-on-year). Although this boosted the occupancy rate to 92.2%, both fund income and distributable amounts recorded year-on-year declines of approximately 7% to 9%. The report forecasts that short-term operational challenges persist, with the national warehouse logistics market undergoing adjustment and rental pressures remaining. This indicates that GLP's traditional logistics ‘cash cow’ business faces severe tests from market supply-demand adjustments.

Thirdly, the potential risk of a sell-off by key shareholder Vanke. Within GLP's equity structure, Vanke – a property developer grappling with debt crises – represents a significant variable. Media reports indicate Vanke acquired a 21.4% stake in GLP for approximately US$2.454 billion as early as 2018. Recently, to address its own operational difficulties and liquidity pressures, market rumours suggest Vanke is seeking to sell its entire stake in GLP and has approached several potential state-owned enterprise buyers. Although no agreement has been reached, Vanke's exit intentions undoubtedly introduce uncertainty regarding GLP's equity stability and market valuation.

GLP China is navigating a tightrope between old and new growth drivers. On one hand, the explosive growth of its computing power and new energy businesses paints a picture of high future growth; on the other, its traditional logistics and warehousing operations are grappling with the pain of declining rents. Heavy historical debt and an uncertain shareholder structure further add turbulence to the voyage of this giant vessel. For investors, while excited by the ‘new economy’ narrative, it is imperative to closely monitor substantive progress in its deleveraging process and changes in the profitability of its core assets.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.