Boyu joins Chinese consortium for $2.5b GLP investment
Boyu Capital and several Chinese strategic investors have joined a consortium that has committed $2.5 billion to Global Logistic Properties (GLP), a Singapore-listed warehouse operator.
The deal was announced in February, with Hopu Investment Management confirmed as a participant alongside Bank of China's investment unit, an unnamed Chinese insurance company and other state-owned companies and institutional investors. The first tranche of the investment - worth $1.6 billion - was completed in June.
The second tranche of $875 million was paid on September 24, according to a statement. In addition to Boyu, China Life Insurance, China Development Bank China, China Post Insurance and Bank of China International-owned China Infrastructure Partners were confirmed as taking part in the second tranche. Hopu also participated.
The consortium now owns 1.5% of GLP and 30.3% of the company's China subsidiary, which has assumed control of all GLP's operations in the country.
"Our partnership with these top-tier Chinese institutions provides the three factors we believe are critical to solidify our market leadership: access to land, access to customers and access to capital," said Ming Z. Mei, GLP's CEO. "As demand for modern logistic facilities in China continues to grow, our partners will be key in helping us ramp up growth in terms of land acquisitions, development starts and leasing."
Since the agreement was announced, GLP has formed partnerships with several Chinese corporates, such as China Materials Storage and Transportation Development, Sinotrans, COFCO, Bank of China, Jinbei Automative and Guangdong Holdings.
Hopu is said to be seeking at least $2 billion for a new vehicle, Hopu Master Fund II, with $1 billion committed as of May 2013. Boyu has also reportedly raised $1.5 billion for its second China-focused fund.
GLP, which counts GIC Private as its single largest investor, has a $16.9 billion property portfolio comprising 23.4 million sq m. It expects to see robust demand for logistics space in China driven by rising domestic consumption, urbanization and e-commerce.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.