Allianz Real Estate to invest $600m in GLP’s China, Japan funds

The logo of Europe's biggest insurer Allianz SE is seen on the company tower at La Defense business and financial district in Courbevoie near Paris, France, March 2, 2016. REUTERS/Jacky Naegelen/File Photo

Allianz Real Estate, the realty investment arm of German insurer Allianz, has committed to invest $600 million in the China and Japan-focused funds of Singapore-based logistics major GLP, according to an announcement Wednesday.

DEALSTREETASIA reported last year that Allianz Real Estate has been actively scouting for logistics deals in the booming consumer economies of China, India, and Southeast Asia as it seeks to build a pan-Asia logistics portfolio.

The investment in GLP funds is part of Allianz Real Estate’s strategy to grow its real estate exposure in the Asia-Pacific region, the firm said.

GLP’s China and Japan development funds focus on developing modern, large-scale logistics facilities across China and in the Greater Tokyo and Osaka regions in Japan.

“We continue to believe in the long term fundamentals of the Asia-Pacific region. Logistics is a core part of our investment strategy and this opportunity will further diversify our portfolio,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

At the end of 2018, Allianz Real Estate had a global portfolio of €63.5 billion ($71 billion) with over €3 billion ($3.4 billion) in the Asia-Pacific region and over €5.5 billion ($6.2 billion) in logistics globally.

The investor already has exposure to the logistics sector in Australia, China, Japan, and Korea. In fact, it has doubled its exposure to the e-Shang Redwood (ESR) backed logistics fund in Japan in 2018, according to a top executive.

It had also had invested $100 million in Redwood Japan Logistics Fund II, a JPY-denominated logistics fund, in September 2017.

In an interaction with this portal last year, Desai said the Asia Pacific logistics market is large but still under-penetrated while e-commerce and the growth in consumption are exponential.

GLP has over $64 billion in assets under management in real estate and private equity funds around the world. It was delisted from the Singapore Stock Exchange in January 2018 following an $11.6-billion privatisation deal led by a private equity consortium comprising Nesta Investment Holdings, a vehicle owned by Hopu, Hillhouse Capital, SMG, Bank of China Group Investment and Vanke.

Ming Mei, Co-Founder and CEO of GLP, said the partnership with Allianz Real Estate is a “strong strategic fit”, given the investor’s reputation and history as an investment and asset manager for real estate and GLP’s investment expertise and global scale.

Also Read:

Allianz Real Estate plans to up new economy, logistics investments in China

Singapore’s GLP plans $3b IPO of US warehouse assets

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.