GLP raises US$2.1bn for latest China logistics fund

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Warehouse investor and developer GLP has raised RMB 15bn (US$2.1bn) in the final closing of its GLP China Income Fund I to support its capital recycling strategy in China.

GLP CIF I raised equity commitments from seven institutional investors, six of which were new clients for GLP, according to the company.

First launched in December 2019, the fund is fully-seeded with 34 income-producing logistics properties located in 18 cities across China.

“Despite the current environment, we received significant interest from institutional investors to participate in GLP CIF I,” said Teresa Zhuge, executive vice chairman of GLP China.

“We believe it is a testament to GLP’s high-quality, modern logistics assets and our fund management and operational capabilities, which allow us to drive value through all phases of the asset life cycle. Investor demand for China logistics real estate is exceptionally strong and we are pleased to provide our institutional investor partners access to this market opportunity.”

GLP believes China is the largest consumption opportunity in the world, with an advanced and rapidly-growing e-commerce market.

The fund is the third vehicle to support GLP’s capital recycling strategy, following the GLP China Value-Add Venture I and II vehicles, which were launched in 2018.

The firm manages six China real estate and private equity funds, which hold about US$19bn in assets under management.

Last year, Allianz Real Estate, the property arm of the German insurer, committed US$600m to GLP‘s logistics development funds in China and Japan.

GLP has US$89bn in AUM, and operates across Brazil, China, Europe, India, Japan, and the US.