GLP partners with GIC for new $2b China real estate fund: Report

GLP China
Photo: GLP website

Logistics major GLP has teamed up with long-time partner Singapore sovereign wealth fund GIC Private to launch a new investment vehicle that targets $2 billion in assets under management, according to a PERE report.

The report added that GLP China Value-Add Venture II will have GIC as the sole investor with a commitment of $1 billion, marking GIC’s first investment since January, when it sold its shares in GLP as part of the Singapore-headquartered logistics giant’s privatization process.

The launch of the fund comes seven months after GLP launched GLP China Value-Add Venture I with China Life committing Rmb10 billion ($1.6 billion). The predecessor fund focuses on acquiring completed logistics and industrial assets in China.

GLP and GIC, however, have not issued an official statement about the fund and its actual size.

In November 2017, GIC, the single largest shareholder of GLP, voted in favor of privatizing the company. The privatization pushed through and GLP delisted from the Singapore Exchange on January 22, 2018.

The $11.6-billion buyout and privatization, considered to be the largest ever private equity acquisition of an Asian company, took place via a scheme of arrangement. The move received the approval from majority of GLP’s shareholders.

Last month, GLP announced the close of two funds – GLP Europe Income Partners I and GLP Europe Development Partners I – and raised a total of $4 billion mostly from long-term investor.

Besides long-term investors, which include sovereign wealth funds, pension plans, and property and insurance firms from North America, Asia, Europe, and the Middle East, the two funds also attracted several new investors.

The new investors include Korea Fire Officials Credit Union, the savings fund of Korea’s fire service, Oxford Properties, QuadReal Property Group, and Tesco Pension Investment.

In May, the industrial logistics provider announced the launch of its debut private equity fund that is seeking to raise Rmb10 billion ($1.6 billion) to invest in the logistics ecosystem.

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