The fund will acquire this Beijing industrial park from GLP
GLP Capital Partners has set up a fund targeting industrial parks in China with an initial investment capacity of more than $350 million.
The new vehicle will focus on properties catering to advanced research manufacturing (ARM), the asset management arm of warehouse specialist GLP said Wednesday in a release. Known as GCP China Advanced Research Manufacturing Value-Add Partners, the fund will be seeded with a Beijing industrial park from GLP’s balance sheet with 140,000 square metres (1.5 million square feet) of net leasable area.
No information was disclosed about CAVP’s limited partners. A person familiar with the new strategy told Mingtiandi that the fund has received backing from a global institutional investor.
“High-tech manufacturing remains a bright spot and we continue to believe in the long-term fundamental demand for this sector as the transformation and upgrading of traditional industries continues to accelerate,” said Tim Wang, co-president of industrial real estate at GCP China. “We look forward to expanding this fund as we capitalise on the opportunities that we’re seeing.”
Beijing Research Hive
The unidentified Beijing asset, developed and managed by Singapore-based GLP, serves customers in high-end car manufacturing, aviation, autonomous driving and renewable energy, according to GCP. Images accompanying the press materials appear to show a complex in Shunyi district known as GLP Beijing Huanpu International Science and Technology Innovation Park.
Tim Wang, co-president of industrial real estate at GCP China
With the addition of CAVP, GCP has more than $3.5 billion of investable capital targeting logistics/industrial parks with an ARM focus. This includes China Income Fund X with a 970,000 square metre portfolio of advanced manufacturing and warehousing logistics parks and China Income Fund XII with 2.2 million square metres of logistics and business park assets.
GCP China president Teresa Zhuge said the firm remains focused on markets with strong fundamentals, durable demand drivers and high barriers to entry.
“We are pleased to provide investors access to GLP incubated and managed ARM facilities as we progress on our capital recycling goals,” Zhuge said. “We will continue to utilise our insights and create value for investors by capitalising on the continued rise of the new economy.”
Collecting Commitments
In addition to its ARM-related strategies, GCP in late December revealed its China Income Fund XI with assets under management of RMB 3 billion ($420 million), backed by an unnamed Chinese insurer. The fund is seeded with four logistics parks from GLP’s balance sheet with a total leasable area of 540,000 square metres.
In January, GCP-backed Hidden Hill Capital announced the final close of its PE RMB Fund II targeting logistics and proptech firms, with the strategy having raised RMB 8 billion in capital commitments. The vehicle continues the approach of the 2018-vintage PE RMB Fund I, focusing on growth-stage companies involved in modern logistics services, digital supply chain, renewable energy and related tech.
Also last month, GCP announced the sale of 12 logistics assets in Brazil via two separate transactions totalling $300 million. A person familiar with the transactions identified the buyers as North American investment giant Brookfield and domestic financial group BTG Pactual.
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