Asia’s biggest warehouse operator GLP announced on Wednesday that it has built a new China fund, GLP China Value-Add Venture III (GLP CVA III), with an investment firepower of 4.5 billion yuan (about $675 million) to back logistics assets in Shanghai.
Singapore-based GLP built the new fund with a group of international and Chinese institutional investors through a parallel fund structure – an investment vehicle that co-invests and exits alongside the main fund.
“2020 has been the largest-ever fundraising year for GLP,” said the firm in a statement. Globally, the firm has added over $12 billion to its assets under management (AUM) this year through the launch of six funds under the real estate and private equity strategies.
The GLP CVA III is the third China-focused value-add fund in GLP’s logistics real estate series. It will invest in modern logistics assets in GLP Park Lingang in eastern China’s Shanghai City, one that it claims to be the biggest port-based logistics park in the country.
In September 2018, GLP launched the $2-billion predecessor fund, GLP China Value-Add Venture II, in partnership with Singapore’s sovereign wealth fund GIC. Its first China value-added real estate fund, GLP China Value-Add Venture I, was established in February 2018 with total equity commitments of 10 billion yuan ($1.6 billion) from a single investor, China Life Insurance Group.
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 $97 billion in total AUM, according to its website. With operations across 17 countries, the firm manages funds investing in markets including China, Europe, Japan, India, and Brazil.
The third China-focused value-add fund will join another six vehicles that GLP has introduced over the course of about seven 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.
In April, GLP held the final closing of GLP China Income Fund I (GLP CIF I) with a total investment capacity of 15 billion yuan ($2.1 billion). At the time of the final closing, the fund contained 34 income-producing assets across 18 cities in China.