GLP raises $1.2bn for new value-add logistics strategy in China

The fund has attracted investors including APG for opportunities arising from China's deleveraging environment and cold storage facilities.

GLP has held a $1.2 billion first close for its new flagship value-add logistics fund for China, GLP China Value-Add Partners IV, PERE has learned.

GLP CVA IV has attracted a total of four institutional investors, including Dutch pension manager APG Asset Management and GLP itself, in the first close. The vehicle has a hard-cap of $1.6 billion.

The Singapore-headquartered logistics giant already operates investment funds in the country with a core risk and return profile.

The value-add GLP CVA IV fund represents a differentiated value-add strategy, which sees the firm focused on acquiring existing assets, according to a statement.

Unlike the firm’s other China-focused vehicles, which were fully seeded prior to fundraising, Fund IV is partially discretionary, although it is seeded with five assets located in key logistics hubs in China with a total net leasable area of approximately 6.46 million square feet.

Further assets can be acquired both from GLP’s other vehicles or from third-parties, it is understood. Specifically, the firm wants to use the proceeds of the fund to acquire acquisition opportunities arising from ongoing deleveraging initiatives in China in one theme and in the cold storage segment in another.

Tim Wang, co-president of logistics and industrial real estate of GLP China, told PERE: “GLP looks to provide our investment partners with a range of real estate funds with varying return targets. We saw an opportunity in the China market to launch a commingled acquisition fund with a differentiated value-add strategy.” It is understood that the incoming fund could inherit some of the firm’s existing assets that are in the final stage of completion but have yet to be leased.

“We continue to believe in the long-term fundamental demand drivers of the China logistics market including the overall growth of the sector through e-commerce and structural shifts in supply chain management,” Graeme Torre, APG’s head of real estate, Asia-Pacific, said in the same statement.

“A value-add approach in this current dislocated environment is an obvious way to capture value within this maturing asset class.”