Global Logistic Properties, the Singapore-listed developer and fund manager, has announced a partnership with China Development Bank Capital (CDB), a move that will further increase its strong foothold in the Chinese logistics sector. CDB Capital is the equity investment and asset management arm of China Development Bank.
With this deal, GLP has become the bank’s major partner for logistics infrastructure development in the country, helping it to gain greater access to land and financing resources, the developer said in a statement.
“As the main institutional investor promoting urbanization and infrastructure development projects in China, CDB Capital will enhance our land sourcing capabilities, which will help us drive value creation as we ramp up growth across China,” said Ming Z Mei, chief executive officer of GLP.
This announcement comes less than a month after GLP completed the funding program for its China business, becoming the biggest creator and investor in institutional grade logistics assets in the country. $2.5 billion in equity was raised through two rounds of funding. CDB Capital was one of the investors in the second tranche, which helped to raise $875 million.
Calling logistics infrastructure a policy priority for the Chinese government, Fan Haibin, president of CDB Capital said that “GLP’s unrivalled expertise in logistics network planning, development and management of modern facilities will help to provide an ideal platform” to enable this development.
Much of GLP’s logistics operations are focused in Asia, particularly China, and Brazil. Earlier this year in August, it invested $324 million for a 15.3 percent stake in the Shanghai-listed China Materials Storage and Transportation Development Company.
According to its 2013 annual report, GLP has 61 million square feet of completed property in China.