Global Logistic Properties (GLP), the Singapore-based logistics fund manager, has established its latest US-focused income fund – GLP US Income Partners III.
The firm, which is listed on the Singapore Stock Exchange, has corralled $620 million from six institutional investors from Asia, US and Middle East. GLP itself will commit $60 million to the strategy.
GLP said in a statement it expected to use the capital from the fund to invest $1.5 billion over three years.
Ming Mei, chief executive of GLP, said: “Our US fund management platform continues to perform strongly. Capital raising for our third US fund exceeded our expectations. We saw strong support from new and existing institutional investors, which is testament to our strong track record as an asset manager and strong investor demand for high quality US logistics real estate.”
GLP has seeded the fund with its $1.1 billion acquisition of US logistics real estate portfolio from Dallas-based Hillwood Development Company, which it announced in September.
The portfolio’s 32 assets, which total 15 million square feet across the US, will be purchased in two tranches at a going-in cap rate of 5.7 percent.
The first tranche, which is expected to close in December, involves a $700 million portfolio of completed logistics properties comprising 10 million square feet of Class A space. The second tranche will involve a $400 million development portfolio representing five million square feet of Class A logistics facilities in the same markets as the initial portfolio.
GLP will then be left with $400 million of the fund’s capital for further acquisitions in the US.
GLP is the second largest logistics property owner and operator in the US with a footprint of 173 million square feet. At the start of the month the firm, following a request from its largest shareholder, Singaporean sovereign wealth fund GIC Private, hired JPMorgan and set up a special committee of four independent directors to undertake a “strategic review” to mull options including a possible sale. The review comes on the back of rumors that GLP was a takeover target for a China-based consortium, although GLP at the time denied that it was in talks with this investor group.
M3 Capital Partners acted as exclusive financial advisor to GLP on the establishment of GLP US Income Partners III.
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