GLP launches $3b China logistics fund
Global Logistic Properties (GLP), a Singapore-listed warehouse developer largely owned by GIC Private, has launched a $3 billion China-focused logistics infrastructure fund, capturing the opportunities in China domestic consumption and the shortage of logistics facilities.
CLF Fund I, which is managed by GLP, received a total of $1.5 billion commitment, with leverage allowing for an investment capacity of over $3 billion over three years.
Six other institutional investors from Asia, Europe and North America, including sovereign wealth funds and pension funds, also invested, with GLP retaining a 56% stake in the entity, according to a statement.
The fund will invest in new, wholly-owned logistics development projects in China during a three-year period. GLP will provide land to the fund to support 1.8 million square meters of leasable area. It has secured a $1 billion credit facility with China Merchants Banks for the new fund.
"As demand for modern logistics facilities in China continues to grow, CLF Fund I ensures we will have increased funding in place to capture a significant share in a US$2 trillion market opportunity," said Jeffrey Schwartz, co-founder and chairman of the executive committee of GLP.
The latest fund brings GLP's total assets under management to $11.4 billion.
GLP's second-quarter net income fell 25% to $145 million as revenue dropped 19% to $139.8 million.
Morrison & Foerster served legal advisor to GLP in the transaction.
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