GIC, GLP start $2.8b fund to acquire logistics facilities in China

GLP has more than US$50 billion of assets under management across real estate and private equity segments.
GLP has more than US$50 billion of assets under management across real estate and private equity segments.PHOTO: GLOBAL LOGISTIC PROPERTIES

Sovereign wealth fund GIC and logistics facilities provider GLP have struck a partnership to establish a US$2 billion (S$2.8 billion) fund with a focus on acquiring income-generating logistics facilities in China, they said in a joint statement yesterday.

GLP China is the asset manager and will contribute seed assets to the fund.

Mr Ming Mei, co-founder and chief executive officer of GLP, said: "This fund provides long-term capital to further strengthen our dominant network in China.

"We continue to see significant customer demand for our integrated logistics solutions and look forward to continuing to build our relationship with GIC."

Mr Lee Kok Sun, chief investment officer of GIC Real Estate, said: "We believe high consumption growth, especially of e-commerce, will continue to drive demand for high-quality logistics properties in China. This venture will enable us, as a long-term value investor, to capitalise on the structural growth of the logistics sector in China."

GLP has more than US$50 billion of assets under management across real estate and private equity segments.

In January, Global Logistic Properties (GLP) delisted from the Singapore Exchange in a $16 billion privatisation deal.

GIC was GLP's biggest shareholder prior to the privatisation. It no longer holds a stake.

A version of this article appeared in the print edition of The Straits Times on September 12, 2018, with the headline 'GIC, GLP start $2.8b fund to acquire logistics facilities in China'. Print Edition | Subscribe