With the closing of the latest fund in its China income strategy, Singapore-based industrial powerhouse GLP Capital Partners has continued to attract overseas investors into its onshore funds in China by targeting high-growth sectors in the country.
With 10 billion yuan ($1.4 billion; €1.3 billion) of assets under management, the firm closed China Income Fund XII in partnership with a global institutional investor, according to a statement.
The RMB fund is seeded with 25 logistics and business park assets from GLP’s balance sheet, with a leasable area of more than 2.2 million square meters. The assets are in new economy clusters such as Yangtze River Economic Belt, the Beijing-Tianjin-Hebei and the Greater Bay areas. The portfolio is understood to be anchored by a group of tenants in new economy sectors such as high-tech manufacturing, e-commerce and alternative energy.
Teresa Zhuge, president of China at GLP Capital Partners, said in the statement that the firm has “strong conviction” on the growth of the new economy asset classes such as modern logistics parks, technology parks and hi-tech manufacturing parks.
The completion of Fund XII came shortly after the closing of Fund XI in December 2023. With 3 billion yuan of assets under management, Fund XI was backed by a domestic insurance company. Seeded with four modern logistics parks from GLP’s balance sheet, Fund XI also targeted tenants in similar sectors such as automobile manufacturing, pharmaceutical, e-commerce and third-party logistics industries.
Apart from this, GCP-backed private equity firm Hidden Hill Capital also closed 8 billion yuan for its second RMB fund Hidden Hill Capital earlier this month. Like the strategy of its real estate funds, Hidden Hill PE RMB Fund II also targets high-growth sectors in China.
As one of the first non-Chinese managers raising RMB funds in China, GCP has continued to capture significant amounts of capital for its China strategy despite a challenging fundraising environment.
The firm typically raises the onshore vehicles from a mix of domestic and overseas investors, with the majority coming from the former. For the 12 month-period ended in November 2023, nearly half, or $2.2 billion, of the $4.5 billion it raised across development, value-add, income and other private equity strategies came from RMB vehicles. In addition, GLP C-REIT also raised 1.85 billion yuan in a follow-on offering last year.
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