Singapore-based GLP, Asia’s biggest warehouse operator, announced the close of its newest China-focused logistics fund – GLP China Income Fund III (GLP CIF III) – with a total investment capacity of 4.5 billion yuan (about $700 million).
Fund III’s close comes three months after the firm closed Fund II, which has a total investment capacity of approximately $900 million.
In a statement, GLP said the latest fund is seeded with a portfolio of 11 assets, contributed by GLP China, comprising income-generating industrial and logistics parks located in key logistics and industrial hub areas of Shanghai, Suzhou, Tianjin, Chengdu, Wuxi, and Changzhou.
The firm continues to see robust investor demand for stable logistics and industrial assets and income streams in China, according to Teresa Zhuge, GLP China’s executive vice chairman.
“The fund management platform is an important source of capital for GLP and we will continue to raise capital for both our development pipeline and stabilized assets to scale our business effectively while generating attractive returns for our investors,” she added.
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.
GLP CIF III is the seventh 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 more than $10.5 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.
The latest fund 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.