Global Logistic Properties (GLP), which provides logistics facilities in China, Japan and Brazil, has launched the world's largest China-focused logistics infrastructure fund.
CLF Fund I will invest over US$3 billion (S$3.75 billion) to develop modern logistics facilities to cater to growing domestic consumption and the shortage of modern logistics facilities in China.
The fund has attracted six leading global institutions from Asia, Europe and North America, including sovereign wealth funds, pension plans and a global multi-manager.
As the asset manager, GLP will retain a 56 per cent stake in the fund, ensuring alignment of interests with its partners.
The fund will be GLP's exclusive vehicle for new, wholly-owned logistics development projects in China during the three year investment period and provides additional capital to support sustainable long-term growth while enhancing returns on GLP's invested capital.
This transaction establishes a strong platform for future growth and is consistent with GLP's strategy to focus on the world's best markets and grow its fund management business.
Some US$1.5 billion of equity has been committed to the fund, with borrowing allowing for an investment capacity of more than US$3 billion over three years.