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.