Despite the downturn in China’s property market, GLP has raised 5.4 billion yuan (US$743 million) for a fund focusing on the country’s logistics sector.
The GLP China Income Fund VII (GLP CIF VII) is the second in its onshore income fund series to close this quarter. It is seeded with 13 modern logistics assets from the firm’s balance sheet, which are located across logistics hubs such as Shanghai, Qingdao, Wuhan and Changsha.
Total leasable area is 800,000 square metres and serves top customers in e-commerce, logistics and retail sectors. In line with the company’s income fund series, the portfolio comprises quality income-generating properties, ensuring strong and recurrent cash-flow generation.
Teresa Zhuge, GLP China’s executive vice-chairman, says the successful close of the fund demonstrates continued investor confidence in the company’s ability to generate attractive returns.
“As the logistics sector is a fundamental pillar supporting economic growth, we continue to see strong investor demand and are able to accelerate asset monetization and capital recycling to expand our investment in best-in-class logistics infrastructure,” Zhuge says.
Investors in GLP CIF VII, which is the seventh in the firm’s logistics income fund series globally, include leading domestic insurance companies.
In China, the real estate investment manager has an extensive portfolio of logistics assets and land holdings with total gross floor area in excess of 49 million sqm and real estate assets under management of US$45 billion.
Angela Zhao, co-president of logistics and industrial real estate at GLP China, says: “China’s supply chains have displayed strong resilience with growing potential even against the macro environment impacted by the pandemic. We see new opportunities emerging from continued digitalization and efficiency upgrades driven by retail businesses increasingly going online and e-commerce players sharpening their competitive edge.
“We remain committed to investing in and enhancing our facilities in China, supporting new economy sectors. Through sustainability-focused smart park and carbon-neutral technologies, we continue to strengthen our long-term partnerships with clients,” Zhao adds.
Globally, GLP has raised more than US$15 billion over the past 12 months for its logistics funds across core, value-add and development strategies.