GLP, China Life establish $1.6b China logistics fund
GLP, a Singapore-headquartered warehouse operator formerly known as Global Logistic Properties that was acquired by a PE consortium last year, has established a RMB10 billion ($1.6 billion) China fund with China Life Insurance as the sole LP.
The vehicle, GLP China Value-Add Venture I, will focus on acquiring completed logistics and industrial projects, including seed assets provided by GLP. This is part of the company’s broader strategy of moving mature assets from its balance sheet into fund structures – thereby boosting its fund management platform – and using the proceeds to support new developments.
GLP has recycled nearly $8.1 billion of assets in the last six years, according to a statement. Meanwhile, following the establishment of the China Life vehicle, its fund management platform has reached $46 billion in size, which represents annual growth of 56% since 2011.
China Life holds a stake in GLP’s China unit, having participated in a private equity-led consortium that invested $2.5 billion in 2014 for a 30% interest. The consortium also took a minority stake in GLP itself. In January, GLP was delisted from the Singapore Exchange following a S$15.9 billion ($11.5 billion) acquisition that featured Hillhouse Capital and Hopu Investment, among others.
The company has more than $46 billion in assets under management and a portfolio of 59 million square meters across eight countries, including completed and pipeline projects. China represents its largest market with 30 million sqm of modern logistics facilities occupied by the likes of Best Inc, LF Logistics, BMW, and JD.com.
As of March 2017, GLP’s fund management platform had $27 billion in invested capital and $12 billion unallocated. Fund structures include real estate investment trusts (REITs), income funds and development funds. Fund management fees for the year came to $181 million, up from $150 million in 2016.
Revenue from the entire portfolio grew from $777.5 million to $879.6 million over the same period, while net profit rose from $1.03 billion to $1.06 billion.
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