SINGAPORE - Mainboard-listed Global Logistic Properties (GLP) has set up a US$620 million (S$893.6 million) fund that is expected to invest US$1.5 billion over three years.
The fund, GLP US Income Partners III, has secured US$620 million in equity commitments, GLP announced on Thursday (Dec 15). Six leading global institutional investors from Asia, US and Middle East have committed for a stake of about 90 per cent. GLP is the asset manager and will retain the remaining stake of about 10 per cent post-syndication.
GLP's third US fund will hold a US$1.1 billion logistics portfolio from US-based developer Hillwood in a deal that was completed on Wednesday.
An initial US$700 million from this portfolio will be acquired in December 2016, with a further US$400 million of identified pipeline assets to be acquired in phases upon satisfaction of stringent lease-up metrics.
As the asset manager, GLP has a US$400 million mandate for acquisitions in the US that satisfy the fund's investment criteria. GLP is an owner and operator of modern warehouses.
GLP said the the transaction is immediately accretive to the company, with its approximatley 10 per cent equity stake of US$60 million expected to generate a 13 per cent return-on-equity in the first year of investment.
Said GLP CEO Ming Z Mei: "Our US fund management platform continues to perform strongly. Capital raising for our third US fund exceeded our expectations."