GLP Reaches Final Close for Japan Logistics Development Fund, Targeting $9 Billion in AUM
Japan’s largest-ever private real estate fund
Fund was more than 2.0x oversubscribed and closed at its hard cap of JPY 412 billion
Tokyo, 19 January 2022 – GLP today announced the final close of its flagship Japan logistics development strategy, GLP Japan Development Partners IV (“GLP JDP IV”), with JPY 412 billion (~$3.7 billion) of total commitments from a well-diversified investor group of pension funds, sovereign wealth funds and insurance companies representing North America, Asia and the Middle East.
GLP JDP IV is approximately 65 per cent larger than its immediate predecessor fund, the 2018-vintage GLP JDP III, and represents the largest ever amount of capital raised for a Japan-focused private real estate strategy. It is expected to reach over JPY 1 trillion (~$9.1 billion) of assets under management (“AUM”) when fully deployed.
Launched in October 2021 to develop modern logistics facilities in Japan, in particular large-scale projects in the greater Tokyo and Osaka regions, GLP JDP IV was more than 2.0x oversubscribed based on the initial target size of JPY 300 billion and closed at its JPY 412 billion hard cap. The latest round of fundraising for GLP JDP IV totalled JPY 101 billion ($890 million) from nine international and domestic investors, marking strong momentum and continued demand by investors for logistics sector opportunities.
GLP has been active in the Japanese market, with GLP Japan Income Fund (“GLP JIF”) – the company’s private open-ended core strategy – surpassing JPY 300 billion (~$2.6 billion) in total capital commitments. GLP JIF was launched in August 2020 to provide long-term stable returns by investing in high-quality and well-designed properties in Japan. To-date, more than 50 international and domestic institutional partners have committed to GLP JIF.
Ralf Wessel, Managing Director, Fund Management, GLP, said, “The successful GLP JDP IV fundraise on such a short time scale is another strong vote of confidence from our investors. We see a significant interest uptick among domestic institutions who have participated in our development fund series for the first time following a significant representation in our core, open-ended Japan income fund. We are pleased to provide our institutional investor partners continued access to this market opportunity.”
Yoshiyuki Chosa, President of GLP Japan, said: “We are pleased to have closed the fourth vintage of our flagship logistics development fund series and are very appreciative of the strong support from our strategic partners. Our success and growth could not have been possible without the hard work and dedication of our team, who have continued to raise the bar in delivering signature developments that create value through active asset management, ecosystem development and technology and innovation. We will continue to build on our track record to innovate into new strategies, drive growth and serve our customers and investors.”
GLP’s logistics business in Japan spans 10 million square metres (“sqm”) (108 million square feet (“sq ft”)) GFA of completed assets, properties under development and land holdings. GLP’s overall lease ratio in Japan remains high at 99 percent.
Since inception in 2011, GLP’s Japan development funds have delivered in excess of 2.7 million sqm (29 million sq ft) of state-of-the-art, highly efficient developments and continues to set the industry benchmark in terms of design and building specifications. More than 80 percent of the assets developed within GLP’s Japan development funds (by GFA) are green certified, including nine LEED Gold and three LEED Platinum. Developments aim to obtain certifications such as LEED, CASBEE and ZEB, will be equipped with solar panels to offset energy usage and include amenities that support the wellbeing of workers and local communities including day care centres, restaurants, convenience stores and more.
With the establishment of GLP JDP IV, GLP manages over $30 billion AUM of logistics strategies in Japan across five private funds and a listed J-REIT.
GLP is a leading global investment manager and business builder in logistics, real estate, infrastructure, finance 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 US$120 billion in assets under management in real estate and private equity.
We are committed to a broad range of environmental, social and governance (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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