GLP has announced the first close of the China logistics value-add fund, GLP China Value-Add Partners IV (GLP CVA IV), with $1.2 billion in equity commitments and approximately $2.6 billion of investment capacity.
The investors in GLP CVA IV comprise some of GLP’s long-term institutional investment partners including APG Asset Management(APG), the investment manager for the largest pension provider in the Netherlands.
GLP said the fund is a new, differentiated logistics value-add strategy focused on acquiring existing assets and creating value through active asset management, including cold storage conversion and will capitalise on market opportunities arising from ongoing deleveraging initiatives and market consolidation in China.
The fund is seeded with assets located in key logistics hubs in China with a total net leasable area of approximately 600,000 sqm and features significant committed investment capacity to capitalise on further opportunities, including GLP’s robust acquisition pipeline.
Teresa Zhuge, Executive Vice Chairman of GLP China, said “This is an opportune time to establish a China logistics value-add strategy that will capitalise on current market volatility. GLP CVA IV is a new flagship fund backed by GLP’s unique sourcing network, leading market scale and highly experienced teams. We are truly grateful for the trust and continued support of our investor partners.”
Graeme Torre, APG’s Head of Real Estate, Asia Pacific, said, “We continue to believe in the long-term fundamental demand drivers of the China logistics market including the overall growth of the sector through e-commerce and structural shifts in supply chain management. A value-add approach in this current dislocated environment is an obvious way to capture value within this maturing asset class. On behalf of our pension fund clients, we are pleased to be able to expand our relationship with GLP and believe their global and China track record as well as their ESG credentials, will enable us to jointly drive the success of this partnership.”
Tim Wang, Co-President of Logistics and Industrial Real Estate of GLP China, said, “China’s e-commerce sector continues to dominate growth amongst major economies, capturing tailwinds of the pandemic. With a rise in demand for fresh food e-commerce and pharmaceutical related solutions, cold storage space continues to be highly sought-after, and the market is expected to more than double in size by 2025.”
Over the last 12 months, GLP has raised $14.8 billion in equity across strategies and geographies for its global logistics funds.
GLP CVA IV follows the recent close of GLP China Income Fund VI, an onshore income fund with a portfolio of RMB 7.6 billion of assets under management and invested by a group of leading insurance companies as well as other existing GLP investment partners in China.