GLP has closed its GLP Japan Development Partners IV fund (GLP JDP IV) with total commitments of JPY 412 billion (US$3.7 billion), according to a press release on Wednesday.
GLP said GLP JDP IV is approximately 65 per cent larger than its immediate predecessor fund, the 2018-vintage GLP JDP III, and represents the largest ever amount of capital raised for a Japan-focused private real estate strategy.
It is expected to reach over JPY 1 trillion ($9.1 billion) of assets under management when fully deployed.
Launched in October 2021 to develop modern logistics facilities in Japan, in particular large-scale projects in the greater Tokyo and Osaka regions, GLP JDP IV was more than 2.0x oversubscribed based on the initial target size of JPY 300 billion and closed at its JPY 412 billion hard cap. The latest round of fundraising for GLP JDP IV totalled JPY 101 billion ($890 million) from nine international and domestic investors, marking strong momentum and continued demand by investors for logistics sector opportunities.
GLP has been active in the Japanese market, with GLP Japan Income Fund (GLP JIF) – the company’s private open-ended core strategy – surpassing JPY 300 billion ($2.6 billion) in total capital commitments. GLP JIF was launched in August 2020.
Ralf Wessel, Managing Director, Fund Management, GLP, said, “The successful GLP JDP IV fundraise on such a short time scale is another strong vote of confidence from our investors. We see a significant interest uptick among domestic institutions who have participated in our development fund series for the first time following a significant representation in our core, open-ended Japan income fund. We are pleased to provide our institutional investor partners continued access to this market opportunity.”
Yoshiyuki Chosa, President of GLP Japan, said: “We are pleased to have closed the fourth vintage of our flagship logistics development fund series and are very appreciative of the strong support from our strategic partners. Our success and growth could not have been possible without the hard work and dedication of our team, who have continued to raise the bar in delivering signature developments that create value through active asset management, ecosystem development and technology and innovation. We will continue to build on our track record to innovate into new strategies, drive growth and serve our customers and investors.”