Singapore-based GLP on Thursday announced a second closing for its GLP Japan Income Fund (GLP JIF), bringing the logistics vehicle to JPY 560 billion ($5.4 billion) in assets under management.
In August, Asia’s biggest warehouse developer announced the launch of GLP JIF with JPY 280 billion in AUM, seeded with 11 assets in Greater Tokyo and Osaka. Funds from the second closing will be used to acquire three additional assets in Tokyo, as well as other market opportunities.
More than 20 international and domestic investors committed capital alongside GLP in the latest round, the company said in a release.
“GLP is the market leader in ground-up development and asset management and we have developed a strong pipeline of modern assets in Japan to support our income fund strategies,” said Yoshiyuki Chosa, president of GLP Japan. “This year we experienced record high leasing in our logistics business which highlights the team’s strong leasing capabilities and the market need driven by rapidly growing ecommerce demand.”
GLP JIF is billed as Japan’s largest private open-ended logistics real estate income fund, with shares sold directly and solely by the issuer.
Including the three target assets, the fund’s portfolio is newly developed logistics facilities totalling more than 1.3 million square metres of gross floor area which have been fully leased on long-term deals.
“We launched GLP Japan Income Fund in response to investor demand for cash yields and access to GLP’s proprietary pipeline of newly developed, income-producing logistics assets,” said Ralf Wessel, managing director for fund management at GLP in Singapore. “The second close exceeded our initial target offering and we have partnered with some of the best-in-class international and domestic investors in the world.”
Track Record in Sheds
GLP is the largest developer and operator of modern logistics real estate in Japan, with roughly $22 billion in AUM in the country out of $97 billion in AUM globally in its real estate and private equity funds.
In addition to GLP JIF, the company is the sponsor and manager of GLP J-REIT, a real estate investment trust that listed on the Tokyo Stock Exchange in December 2012.
More recently, GLP in December 2018 set up its GLP Japan Development Partners III, a closed-ended opportunistic fund backed by the Canada Pension Plan Investment Board (CPPIB) and other institutions.
The $5.6 billion GLP JDP III fund was seeded with GLP Sagamihara, a $1.2 billion logistics development in the Greater Tokyo area acquired by the firm in December 2016. GLP JDP III followed the $2 billion GLP JDP II fund, which GLP and CPPIB jointly announced in 2016.
Amid strong demand from existing and new investors, in the last 12 months GLP added about $15 billion in AUM to its logistics strategies and launched five new logistics funds.