GLP Announces $5 Billion Recapitalisation to Establish China’s Largest-Ever Private Logistics Real Estate Income Fund
GLP CIP V is GLP’s first China offshore USD-denominated income fund; Portfolio comprises 54 prime, institutional-grade modern logistics assets totalling 5+ million sqm of GFA
Recapitalisation facilitates the full and complete exit of GLP CLF I, GLP’s first logistics development fund in China
Singapore, 6 July 2022 – GLP announced today the establishment of GLP China Income Partners V (“GLP CIP V”) via a ~$5 billion recapitalisation of the portfolio developed within the 2013-vintage GLP China Logistics Fund I (“GLP CLF I”).
GLP CIP V received strong interest from both existing GLP CLF I investors who opted to rollover their investment as well as new investors, including leading insurance companies, sovereign and pension funds, many of which are existing investors in other GLP funds. AIA and Allianz Group have invested in GLP CIP V.
The transaction represents a successful and full exit for GLP CLF I, the firm’s flagship USD-denominated, logistics develop-to-core strategy formed in 2013 with $1.5 billion of capital commitments from leading institutional investors. Since then, GLP has executed on a focused and disciplined development strategy to create a diversified portfolio of 54 prime, institutional-grade modern logistics assets totalling 5+ million square meters (“sqm”) across 27 key logistics markets in China.
More than 80 percent of the portfolio is located in Tier 1/1.5 cities with a lease ratio of 90+ percent as of May 2022. The portfolio has a diversified tenant roster anchored by major third-party logistics and e-commerce customers which represent approximately 70 percent of the leased area.
GLP CIP V owns GLP Park Shanghai Baoshan which is a LEED Platinum (Operations & Maintenance) certified building. It is one of the few logistics facilities in China to achieve the highest possible rating in LEED which is the world’s most widely recognized and used standard for measuring the performance of green buildings. GLP Park Shanghai Baoshan incorporates GLP’s market-leading intelligent park technologies including advanced asset management systems, automation, renewable and new energy solutions including solar panels and LED lighting as well as health and wellbeing systems to enhance operational efficiency and productivity.
Teresa Zhuge, Executive Vice Chairman of GLP China,said, “GLP CIP V represents a significant milestone for our business and could not have been possible without the hard work and dedication of our team to create a coveted portfolio in one of the most sought-after real estate asset classes. Logistics continues to prove its resiliency and strong growth potential and we look forward to continuing to create value for our investors over the long-term.”
Craig A. Duffy, GLP’s Managing Director, Fund Management,said: “We wish to thank our investment partners for their continued trust and support. Today's announcement is a clear validation of GLP’s competitive advantage as an operator and an investor to deploy capital and deliver returns in scale and drive value creation across all phases of the asset cycle. We will continue to build on our track record to innovate into new strategies, drive growth and serve our customers and investors.”
Mark Konyn, AIA’s Group Chief Investment Officer, said:“AIA is delighted to be an investor in GLP CIP V. We see substantial opportunities to enhance returns for AIA’s customers and shareholders through diversification of our investment portfolio into alternative asset classes. In partnering with GLP, a world-class global investment manager, AIA is successfully executing our growth and portfolio strategy. This investment also illustrates AIA’s strong conviction in the global logistics real estate market and in China. We are also pleased with GLP’s commitment to ESG goals and its commitment to achieving net zero carbon emissions in line with AIA’s own target.”
Danny Phuan, Head of Acquisitions Asia Pacific & Head of China, Allianz Real Estate said: “Investing in logistics is a high conviction global theme for us. The sector continues to benefit from strong market fundamentals such as supply-chain reconfiguration and the expansion of e-commerce. Alongside this, China represents an excellent investment opportunity for our investors over the long term and investing with partners like GLP and other like-minded investors makes this an exciting opportunity.”
GLP China’s logistics assets and land holdings total in excess of 49 million sqm. GLP is also one of the largest independent data centre operators in China with existing assets that will deliver approximately 1.4 gigawatts (“GW”) of IT capacity upon completion. Through our strategic partnerships, our renewables portfolio in China comprises over 3 GW of generating capacity across solar and wind.
GLP is a leading global investment manager and business builder in logistics, data centres, renewable energy and related technologies. Our combined investing and operating expertise allow us to create value for our customers and investors. We operate across Brazil, China, Europe, India, Japan, the U.S. and Vietnam and have more than $120 billion in assets under management.
We are committed to a broad range of ESG commitments that elevate our business, protect the interest of our shareholders and investors, support our employees and customers and enhance our local communities. Learn more at glp.com/global.
Craig A. Duffy
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