Logistics real estate investor GLP has announced the establishment of a new China income fund, GLP China Income Partners V (GLP CIP V), through a $5-billion recapitalisation of its 2013 fund portfolio.
The recapitalisation marks the full exit of GLP in the 2013 GLP China Logistics Fund I (GLP CLF I), its flagship USD-denominated, develop-to-core logistics strategy formed with $1.5 billion of capital commitments.
More than 80% of GLP CLF I’s portfolio is located in Tier 1/1.5 cities with a lease ratio of more than 90% as of May 2022, according to the announcement.
The recapitalised portfolio includes 54 prime, institutional-grade modern logistics assets totalling more than 5 million square meters across 27 key logistics markets in China.
The new fund, GLP CIP V, received strong interest from existing CLF I investors. Insurance majors AIA and Allianz Group have also invested in GLP CIP V.
GLP CIP V owns GLP Park Shanghai Baoshan, which is a LEED Platinum (Operations & Maintenance) certified building. It is one of the few logistics facilities in China to achieve the highest possible rating in LEED which is the world’s most widely recognized and used standard for measuring the performance of green buildings.
“Logistics continues to prove its resiliency and strong growth potential and we look forward to continuing to create value for our investors over the long-term,” said Teresa Zhuge, executive vice chairman of GLP China.
GLP China’s logistics assets and land holdings total in excess of 49 million square meters. It is also one of the largest independent data centre operators in China with existing assets that will deliver approximately 1.4 gigawatts of IT capacity upon completion.
In 2021, GLP announced raising a record $13.6 billion in capital equity, boosting its performance across logistics, digital infrastructure, and renewable energy. GLP said its global assets under management also surpassed $120 billion as of December 2021, while its new developments hit $7.9 billion, up 50% year-on-year.
It also established six new funds across diverse geographies and strategies last year and set up a global strategic partnership with Asian insurer AIA to invest in the global logistics real estate industry and related opportunities.
Early this week, Hong Kong-based ESR Cayman Ltd announced that it has agreed to sell an 873,000 square meter balance sheet portfolio in China to an unnamed global institutional investor.
The announcement said the portfolio is worth about $730 million, with the transaction representing the largest self-developed balance sheet sell-down for ESR to date.