Mainboard-listed Global Logistic Properties (GLP) has set up a fund expected to invest US$1.5 billion (S$2.16 billion) over three years.

GLP US Income Partners III has secured US$620 million in equity commitments, the warehouse owner and operator said yesterday.

Six leading institutional investors from Asia, the United States and the Middle East have committed for a stake of about 90 per cent.

Asset manager GLP will retain the remaining stake post-syndication.

GLP's third US fund will hold a US$1.1 billion portfolio from US-based developer Hillwood, in a dealsealed on Wednesday.

An initial US$700 million will be acquired this month, with further identified pipeline assets to be acquired in phases.

GLP has a US$400 million mandate for US acquisitions.

The transaction is immediately accretive to the company, said GLP. Its US$60 million equity stake is expected to give a 13 per cent return on equity in the first year of investment.

Chief executive Ming Z. Mei said: "Our US fund management platform continues to perform strongly. Capital raising for our third US fund exceeded our expectations."

Ann Williams