GLP closes latest China logistics fund at $2.1b

Seven institutional investors made LP commitments to the fund, including six new relationships. 

“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,” Teresa Zhuge, an executive vice chairman at GLP China, said in a statement. “Investor demand for China logistics real estate is exceptionally strong.”

China Income Fund has been seeded with 34 stabilized, income-producing assets in 18 cities. GLP now manages six Chinese real estate and private equity funds, with about $19 billion in combined assets under management. It describes the country as the largest consumption opportunity globally with an advanced and rapidly growing e-commerce market.

Late last year, GLP set up China Income Partners, also with a capacity of RMB15 billion and plans to invest in modern income-generating logistics assets in about 20 cities. This followed the establishment of three vehicles in 2018, including a $2 billion fund alongside GIC Private, a $1.6 billion fund to be managed by a local PE unit called Hidden Hill Capital, and a separate $1.6 billion fund with China Life Insurance as the sole LP. 

Formerly known as Global Logistic Properties, GLP was acquired in 2017 for $11.5 billion by a consortium including Hillhouse Capital and Hopu Investment. Its global assets under management have increased from about $43 billion at the time of the acquisition to $89 billion currently. These are managed across platforms that have recycled more than $8 billion of assets since 2012. 

GLP began operating in China in 2003 and positions itself as a pioneer of the local modern logistics segment. China is also the firm’s largest market, with at least 30 million square meters of facilities occupied by the likes of Best Inc, LF Logistics, BMW, and JD.com. Additional activity in the country includes confirmation last year that GLP would acquire a 50% stake in China Merchants Capital, the PE arm of China Merchants Group.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• Infrastructure
• China
• GLP
• Logistics
• Real estate