Global logistics provider GLP announced on Friday that it has teamed up with a group of institutional investors to launch a new China fund with 15 billion yuan ($2.1 billion) for investment opportunities in stabilized, income-generating modern logistics assets.
The new fund, dubbed “GLP China Income Partners I,” will invest in around three million square meters of modern logistics assets in prominent locations in about 20 cities across China. The fund, which will be managed by GLP China, is GLP’s third investment vehicle to recycle capital in the country.
“The establishment of GLP China Income Partners I is consistent with GLP’s strategy to further expand its fund management platform through establishing new funds and increasing its capital recycling initiatives,” said Teresa Zhuge, executive vice chairman of GLP China, in a statement.
GLP China has raised nearly $7 billion of income funds over the past two years. Following the transaction of the new fund, GLP’s total assets under management (AUM) will expand to $86 billion, according to the statement.
The new China fund comes only a few days after GLP inked agreements with Chinese agricultural product logistics service provider China Co-op Group, in which the two parties agreed to jointly establish a fund management company and a logistics firm for logistics assets in first and second-tier cities in China.
GLP, which manages assets in logistics, real estate, infrastructure, finance and related technologies worldwide, is raising the stakes in China where increasing domestic consumption levels, mature e-commerce networks, and the development of related technologies are driving the country to become one of the most influential logistics markets worldwide.
The Chinese logistics market is evolving with the support of technologies like internet of things (IoT), which helps gather, process, manage and analyse data to advance decision-making in the industry. China’s smart logistics industry is projected to reach 900 billion yuan ($128 billion) in 2024, according to ResearchAndMarkets.com.
Besides China, GLP also operates across Brazil, Europe, India, Japan, and the United States.