GLP raises $1.75bn for China logistics fund in first close

GLP raises $1.75bn for China logistics fund in first close

GLP has raised $1.75 billion for the first close of its logistics development fund, GLP China Logistics Fund III (GLP CLF III).

GLP plans to develop the next generation of modern and environmentally-friendly logistics facilities in China, including smart warehouses with integrated technologies to meet evolving customer requirements.

GLP CLF III is the third vintage of the firm’s flagship discretionary commingled logistics development fund series and is targeting $2 billion of total equity commitments which is expected to reach as much as $5 billion of assets under management (AUM) when fully deployed, said the company.

The CLF series of development funds was launched by GLP in 2013 and the 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 more than $7 billion of discretionary equity for logistics real estate development in China, more than any other private real estate manager.

GLP has an extensive portfolio of logistics assets and land holdings with total GFA in excess of 47 million square meters (“sqm”) and real estate AUM of over US$45 billion in China. More broadly, GLP 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.

Teresa Zhuge, Executive Vice Chairman of GLP China, said, “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. 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.”

Led by customer demand, over the past 12 months GLP has delivered more than 3.2 million sqm of newly built, high-specification logistics assets in prime locations across China while signing 18.7 million sqm of new and renewal leases, up 53 percent year-on-year, leased to long term customers including leading eCommerce and 3PL players.

In July, GLP announced the closing of its US$700 million China onshore income vehicle, GLP China Income Fund III (GLP CIF III).