Singapore-based GLP, Asia’s biggest warehouse operator, announced the first close of GLP China Logistics Fund III (GLP CLF III) at $1.75 billion, per an announcement.
The total amount that it plans to raise is $2 billion.
Investments from the fund will help develop the next generation of modern and environmentally-friendly logistics facilities in China.
The warehouse operator announced the close of its newest China-focused logistics fund – GLP China Income Fund III- with a total investment capacity of 4.5 billion yuan (about $700 million) in July this year.
In a statement issued on Wednesday, GLP said that the equity raised during the first close is from leading institutional investment partners across North America, Asia, Europe and the Middle East, the majority of whom are existing GLP investors.
GLP CLF III is targeting $2 billion of total equity commitments which is expected to reach as much as $5 billion of assets under management when fully deployed.
Its two predecessor funds – GLP CLF I and GLP CLF II – will deliver a combined 15 million square meters (sqm) (150 million square feet) across 150 parks in 40 cities.
With the addition of GLP CLF III, GLP manages over $7 billion of discretionary equity for logistics real estate development in China.
“GLP CLF III is indicative of the continued investor appetite for modern logistics in China. The scale which GLP operates enables us to deploy capital efficiently to build a resilient portfolio of next generation of logistics facilities with modern solutions and integrated technologies that contribute to economic growth and job creation in surrounding communities,” said Teresa Zhuge, executive vice Chairman of GLP China.
“We have the most experienced teams on the ground to source opportunities, execute our investment strategies, drive operational efficiencies and create value across asset life cycles,” he added.
GLP is one of the leading global investment managers and business builders in logistics, real estate, infrastructure, finance and related technologies.
The firm has an extensive portfolio of logistics assets and land holdings with total gross floor area (GFA) in excess of 47 million sqm and real estate AUM of over $45 billion in China.
GLP also manages $72 billion AUM in China across logistics, data centres, renewable energy and private equity strategies including the listing of the first logistics C-REIT on the Shanghai Stock Exchange in June 2021.
The CLF series of development funds was launched by GLP in 2013.