GLP, GIC to establish $2b China logistics fund

GLP China will contribute seed assets to the fund and act as manager. It comes four months after GLP set up a $1.6 billion China logistics fund to be managed by its local PE unit Hidden Hill Capital. In February, the company established a separate $1.6 billion fund in the country in partnership with China Life Insurance.

“We believe high consumption growth, especially of e-commerce, will continue to drive demand for high-quality logistics properties in China,” Lee Kok Sun, CIO at GIC Real Estate, said in a statement. “This venture will enable us, as a long-term value investor, to capitalize on the structural growth of the logistics sector in China.”

Formerly known as Global Logistic Properties, GLP was acquired last year in an approximately $11.5 billion deal by a consortium including Hillhouse Capital and Hopu Investment. It claims to have more than $50 billion of assets under management across real estate and private equity and aims to continue expanding its fund management platform through new funds and capital recycling initiatives.

China is the company’s largest market, with 30 million square meters of modern logistics facilities occupied by the likes of Best Inc, LF Logistics, BMW, and JD.com. Other recent activity in the country includes a $58 million investment in agricultural products distributor Wangjiahuan and the launching of a rooftop solar construction project alongside Brookfield Asset Management.

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• Topics
• Greater China
• Growth
• Infrastructure
• Fundraising
• China
• GLP
• GIC Private
• Logistics
• Real estate