Dutch pension fund manager APG has backed GLP’s latest China logistics vehicle which has raised $1.2bn (€1.1bn) at its first close.

APG is among several long-term GLP institutional investment partners to commit equity to the GLP China Value-Add Partners IV (GLP CVA IV) fund, which has an immediate investment capacity of $2.6bn.

GLP said GLP CVA IV was a logistics value-add strategy focussed on acquiring existing assets and creating value through active asset management, including cold storage conversion. 

GLP CVA IV is seeded with 600,000sqm of assets located in key logistics hubs in China.

Graeme Torre, APG’s head of real estate, Asia-Pacific, said: “A value-add approach in this current dislocated environment is an obvious way to capture value within this maturing asset class.”

Teresa Zhuge, GLP China’s executive vice chairman, said: “This is an opportune time to establish a China logistics value-add strategy that will capitalise on current market volatility.”

Tim Wang, co-president of logistics and industrial real estate of GLP China, said with a rise in demand for fresh food e-commerce and pharmaceutical-related solutions, cold storage space continued to be highly sought-after, and the market was expected to more than double in size by 2025.

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