Editor’s note: This story has been updated to include more detailed information on the new fund’s portfolio, GLP’s latest AUM in China and globally, as well as comments from a GLP executive – based a company statement received on April 27.
Singapore-based GLP, Asia’s biggest warehouse operator, has closed its newest China-focused logistics fund with a total investment capacity of 5.8 billion yuan (approximately $900 million), the firm announced on Tuesday.
The fund, dubbed “GLP China Income Fund II (GLP CIF II),” is seeded with a portfolio of 13 modern logistics assets in prime locations across Yangtze River Delta, southern China, and mid-western China, according to the statement. Limited partners (LPs) in GLP CIF II comprise new and existing domestic institutional investors in China.
The update was first reported by IPE Real Assets.
“We launched GLP China Income Fund II in response to investor demand for cash yields and access to GLP’s proprietary pipeline of high quality, income-producing logistics assets. Fund management is an important and growing part of our business and we are committed to expanding this platform through further capital recycling initiatives and establishing new funds,” Teresa Zhuge, executive vice chairman of GLP China, said in the statement.
GLP CIF II is the fifth vehicle in China to support GLP’s capital recycling strategy. The company also manages GLP China Value-Add Venture (CVA) I and II, which were launched in 2018, making US$7 billion of income funds in China.
Last year it launched GLP CVA III with an investment firepower of 4.5 billion yuan to back logistics assets in Shanghai. It also made the final close of CIF I with a total investment capacity of 15 billion yuan.
GLP CIF II will join the other vehicles that GLP has introduced in recent years. Besides the value-add real estate fund series, it also manages GLP China Logistic Fund I & II, GLP China Income Fund series, as well as Hidden Hill Modern Logistics PE RMB Fund I, managed by Hidden Hill Capital – GLP’s private equity platform in China.
Founded in 2009, GLP operates a logistics real estate investor, developer, and operator that manages a total of 63 real estate & private equity funds with over $100 billion in total AUM, according to its website. The firm said that its AUM has been growing at a compound annual growth rate (CAGR) of 48% over the past 10 years.
Operating from 68 offices across 17 countries, the firm manages funds investing in markets including China, Europe, Japan, India, and Brazil. In China, GLP specialises in ground-up development and asset management of modern logistics real estate and currently manages $20 billion AUM of logistics funds across income and development strategies.
China’s logistics sector has been expanding rapidly in recent years. The COVID-19 pandemic has accelerated the growth of online marketplaces, which in turn further spurred the demand for logistics facilities from third-party logistics, e-commerce, and retail companies.
Other companies that have recently raised China-focused logistics funds include Keppel Capital, which launched a $217 million vehicle, and US real estate investment manager LaSalle Investment Management, which raised $379 million for its LaSalle China Logistics Venture in September. CITIC Group’s investment vehicle, CITIC Capital, has also teamed up with a unit of SF Holdings to launch a $308 million fund for logistics properties in China.