Singapore-based warehouse developer GLP has set up a $5 billion income fund focused on logistics properties across China, supported by existing as well as new investors including insurance giants AIA and Allianz.
The new fund—called GLP China Income Partners V—recapitalizes a portfolio of assets developed by GLP China Logistics Fund I, which had been set up in 2013 with $1.5 billion in initial capital commitments from institutional investors. The properties now comprise 54 prime logistics facilities with a combined gross floor area of over 5 million square meters across 27 key locations in China.
“GLP CIP V represents a significant milestone for our business and could not have been possible without the hard work and dedication of our team to create a coveted portfolio in one of the most sought-after real estate asset classes,” Teresa Zhuge, executive vice chairman of GLP China, said in a statement on Wednesday. “Logistics continues to prove its resiliency and strong growth potential, and we look forward to continuing to create value for our investors over the long-term.”
Demand for warehouse space has increased particularly from e-commerce players, whose businesses boomed in the past two years as consumers stuck at home during the pandemic turned to online shopping and food deliveries. Tenants in the recapitalized logistics assets are primarily e-commerce firms and third-party logistics providers, according to GLP.
Backed by investors including Chinese billionaire Zhang Lei’s Hillhouse Capital, HOPU Logistics Investments, and GLP cofounder and CEO Ming Mei, GLP operates across Brazil, China, Europe, India, Japan, the U.S. and Vietnam. It has more than $120 billion in assets under management, including logistics real estate, data centers and renewable energy facilities.
The GLP recapitalization comes on the heels of rival warehouse developer ESR Cayman’s divestment of a portfolio of nine industrial assets in China. A joint venture between the Hong Kong-listed company and Singaporean sovereign wealth fund will buy the properties with a combined gross floor area of 873,000 square meters for $730 million. ESR—which counts U.S. private equity firm Warburg Pincus, Singapore real estate tycoon John Lim and billionaire Chew Gek Khim’s Straits Trading among its investors—says it has more than $140 billion in assets under management.