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GLP forms $7b China logistics fund

  • Holden Mann
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Singapore-listed warehouse operator Global Logistic Properties (GLP) has launched a $7 billion fund for developing logistics facilities in China.

GLP China will hold a 50% stake in the fund, called CLF II, and will also serve as the manager, according to a release. A total of $3.7 billion has been committed to the vehicle so far, from seven investors in addition to GLP, with leverage allowing expansion to $7 billion. Five investors are from Asia; the remaining two are from the Middle East and North America.

The firm will begin acquiring land for development later this year, with construction of new developments to begin in 2016. GLP plans to use the fund to develop 13 million square meters over four years.

CLF II is GLP's latest investment vehicle after its initial CLF fund, which launched in 2013 with a target of $3 billion. That fund, which carried a similar mandate to take advantage of growing demand for logistics space due to China's e-commerce boom, has reached its investment capacity. GLP also manages two Japan-focused funds, which launched in 2011.

In addition to developing its own funds, GLP has itself received significant investment from Chinese investors, with a consortium including Boyu Capital having committed $2.5 billion to the company in 2014.

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