Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

GLP Closes on $7 Bil China Logistics Fund

2015/07/22 by Michael Cole Leave a Comment

Global Logistic Properties is doubling down on its investment in China’s logistics real estate market with a new $7 billion fund dedicated to building more distribution centres across the country.

ming z mei glp

GLP CEO Ming Z Mei

China Logistics Fund II, or CLF II, officially closed today at more than double the size of the company’s previous China fund, and reflects both the Singapore-based warehouse developer’s ongoing faith in the market, and the increasing costs of achieving scale in what has become a fiercely competitive sector.

GLP, as the company is commonly known, became the market leader in China by snatching up bargain priced assets after it was first formed during the global financial crisis in 2007. Now, however, it finds itself competing for warehouse sites in China not only with its traditional shed-building foes from around the world, but with a growing cadre of local market entrants eager to feed China’s hunger for retail distribution centres.

GLP Retains Focus on China

Seven leading global institutions, including some of the world’s largest national pension and sovereign wealth funds, are investing alongside GLP in China, the company said in a statement.

GLP China

After raising CLF II, GLP is eager to look for sites more of its distribution centres in China

To date, $3.7 billion of equity has been committed to the Fund by GLP and investors, which would allow the fund, with leverage, to reach an investment capacity of $7 billion. GLP China will be the manager of the fund, and is taking a 56 percent stake in the vehicle.

Commenting on the company’s plans for its new funding, Ming Z. Mei, Chief Executive Officer of GLP said, “China remains our primary market for development. The fund management platform is an important source of capital for GLP and we remain focused on leveraging it to scale our business effectively while driving higher risk-adjusted returns.”

The developer estimates that its new cash hoard should be sufficient to build 13 million square meters of new distribution centres over the next four years.

GLP did not name the institutions that will be investing with it in CLF II, but did indicate that five of the investors are from Asia, one from North America and another from the Middle East. Of the seven, four investors are partners in CLF I and two are new to GLP’s fund management platform.

CLF I, which was established in 2013, raised $3 billion in capital. M3 Capital Partners (HK) Limited served as exclusive financial advisor to GLP in the formation of CLF II.

New Fund to Build New Projects

GLP says that its new fund will be put to work developing new projects in China, for which it aims to start acquiring new land later this year and to commence construction of new warehouses in 2016.

When the company does start breaking ground on these new facilities, or more importantly, looking for ground to break, it will be doing so under conditions much different than when it first began buying up sites seven years ago, or even when it began deploying CLF I two years ago.

From Blackstone to Vanke, Everyone Wants to Get into China’s Warehouses

Since the company closed on its previous fund, traditional competitors such as Goodman have been joined by a number of new players in the market both international and domestic. The sector has also become a leading target for private equity investors.

GLP itself says that, thanks to demand from China’s expanding retail sector – in particular ecommerce, its portfolio globally has grown at a 61 percent compound annual growth rate since it was founded, and now encompasses 11.8 million sqm of completed facilities, the majority of which are in China.

PropertyGuru - Asia Property Awards Banner

Just last month Canadian fund manager Ivanhoe Cambridge and CBRE Global Investment Partners committed to a joint venture with industrial developer Logos China that could invest up to $400 million into the country’s warehouse market.

That deal came just one week after Gaw Capital Partners announced that it was partnering with Italian-based warehouse developer Vailog to invest at least $300 million, and up to $1 billion into the same sector. And earlier in that same month, China Vanke, which has backing from the Blackstone Group, announced that it was launching its first two logistics projects in China.

Besides these latest investments, traditional competitors such as Australia’s Goodman, as well as startup funds and developers such as the Redwood Group and Warburg Pincus-backed e-Shang have all received international backing to pursue more logistics projects in China.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: crebrief, GLP, highlight, Logistics, Ming Z Mei, Sovereign wealth fund, Warehouse

Office forum 2022 Jumbo

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

Gaw Kailong Cushman & Wakefield value add panel
China’s Value-Add Arena Set to Reward Investors With Local Presence: Watch on MTD TV
MTD TV proptech show
COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV

More MTD TV Videos>>

People in the News

jesline goh UOL
Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief
Lee Hoon KIc
Asia Real Estate People in the News 2022-08-15
daigo Hirai BlackRock
Asia Real Estate People in the News 2022-08-08
Bryan Southergill
Ares Hires Bryan Southergill to Run Asia Real Estate Business

More Industry Professionals>>

People in the News

Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief

jesline goh UOL

Jesline Goh is stepping down as chief investment and asset officer of Singaporean developer UOL Group after nearly five … Read More>>

Asia Real Estate People in the News 2022-08-15

Lee Hoon KIc

Senior personnel changes in Korea, Hong Kong and Singapore lead Mingtiandi’s roundup of HR moves from around the region … Read More>>

Asia Real Estate People in the News 2022-08-08

daigo Hirai BlackRock

BlackRock’s appointment of a new head of Japan real estate leads this week’s roundup of personnel moves from around the … Read More>>

Ares Hires Bryan Southergill to Run Asia Real Estate Business

Bryan Southergill

After more than eight years leading real estate investments for KKR in Asia, Bryan Southergill has taken on a new role … Read More>>

More Industry Professionals>>

Latest Stories

Xia Haijun, CEO of Evergrande
Evergrande, PwC Investigated Over Failure to Report $2B Loan Scheme
Amit-Diwan HINES
Hines Set to Enter Mumbai Market with 30-Storey Office Project
David Green-Morgan RCA
APAC Industrial Property Investment Plunges 62% as Yields Fizzle

Sponsored Features

Douglas Wu Fairland Holdings
How a Hong Kong Mall Repositioning Boosted Revenue by Focusing on Community
For Hong Kong’s Office Market, Border Reopening Holds Key to Unlocking Demand
Top 3 Trends Driving a Connected Experience in Commercial Real Estate

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.