GLP Capital Partners closes $492m China income fund, seeded with Beijing office complex

GLP Capital Partners closes $492m China income fund, seeded with Beijing office complex

Photo from GLP Capital Partners.

GLP Capital Partners (GCP), the investment and asset manager of Asia’s warehouse giant GLP, has raised a new closed-end office income strategy with 3.6 billion yuan ($491.9 million) in total assets under management (AUM). 

GCP China Office Income Fund I, which is seeded with a high-quality, core office complex in Beijing from GLP’s balance sheet, is anchored by an insurance institution in Asia, the firm announced on Friday.

With a gross floor area (GFA) of 678,126.4 square feet, the office complex underwent comprehensive asset management and leasing initiatives after GLP acquired the property in 2021, said GCP. 

Situated in Beijing’s East Second Ring Road Business District, neighbouring the very central parts of the Chinese capital, the complex is currently leased to clients across the areas of financial services, healthcare, pharmaceutical, agriculture, and food.

“We continue to see sustained investor appetite for assets generating stable and secured cash flows,” said Teresa Zhuge, executive vice chairman and president of China at GCP, in a statement. 

The development came just one month after GCP raised about 1.75 billion yuan ($239.2 million) for its China value-add strategies to invest in a pre-identified portfolio of GLP-developed modern logistics assets.

In August, GCP announced the establishment of its first commingled clean energy strategy in China. It secured about 4 billion yuan ($546.9 million) in commitments for this RMB fund, targeting a total fund size of 20 billion yuan ($2.7 billion).

The firm in July also closed China Income Fund VIII, the latest fund in its flagship onshore income fund series, with equity commitments of about 2.6 billion yuan ($355.5 million).

GCP specialises in thematic investing across real assets and private equity (PE). The firm focuses on evolving industries including logistics, digital infrastructures, and renewable energy, which it believes could “play an integral role in the economy well into the future,” according to its website.

It operates in high-growth Asian markets and the US, Europe, and Brazil, with $124 billion in total AUM across 55 funds as of June 30, 2023.

As of October, GCP managed about $58 billion AUM in China for a global set of over 90 institutional private capital partners, representing 46.8% of the firm’s total AUM.  

Its PE strategy covers growth equity and venture capital (VC) investments. One of the firm’s largest PE platforms is Hidden Hill Capital in China, which was founded in 2018 to invest in logistics services, digital supply chain, and logistics-related technology.

Edited by: Padma Priya

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