SINGAPORE (May 18): DBS Group Research has downgraded Global Logistic Properties to &ldquo hold&rdquo from &ldquo buy&rdquo following its share price rally amid ongoing corporate activity possibly involving various bidders for the company.

Year-to-date, shares of GLP have climbed more than 30% to $2.90 as at 12.15pm on Thursday, largely on the back of news of competing bids for the industrial property operator.

According to Bloomberg, a deal for GLP could rank as one of the biggest-ever buyouts in Asia Pacific.

(See:  Global Logistic Properties update on strategic review)

(See also:  GLP said to seek bids for $11.3 bil company)

DBS lead analyst Rachel Tan says there is limited upside following GLP&rsquo s share price rally to close to the research house&rsquo s fair value estimate of $3.00, which is pegged to historical takeover premiums.

&ldquo We believe its current share price at close to 1.2x P/NAV which in our view is fair when compared to former transaction multiples,&rdquo says Tan in a report on Wednesday.

&ldquo At the higher end of the historical takeover premiums of 1.32x, the fair value price could be at a high of $3.23, implying only an 11% upside,&rdquo she says.

However, Tan adds that this is &ldquo in view that the bidding process could close soon as reported in the latest news and assuming a takeover happens&rdquo .

In the event that the bids do not results in a takeover of the company, Tan warns that GLP&rsquo s share price could fall back to close to 1.0x P/NAV at $2.50-$2.60.

&ldquo Scenarios that could derail our thesis include partial disposal of the assets instead of a full takeover, further delays in the process, and higher-than-expected revaluation of the assets from potential completion of developments,&rdquo she says.