Canada Pension Plan Investment Board (CPP Investments) has extended its partnership with GLP by making a JPY110bn (€852.5bn) commitment to GLP Japan Development Partners IV (GLP JDP IV), a fund which has so far raised JPY311bn.
GLP JDP IV, which is expected to reach its full target of JPY412bn in the coming weeks, plans to have assets valued at JYP1trn when fully invested with a 50% gearing ratio. Its 2018-vintage predecessor fund GLP JDP III, which raised JPY250bn, was fully allocated in 2-3 years.
GLP JDP IV will be used to develop prime logistics facilities, mostly in Tokyo and Osaka with the first project coming online in 2025-26.
Ralf Wessel, managing director, fund management, GLP, told IPE Real Assets: “For the first time, we are seeing a portion of domestic Japanese institutions investing in our development fund. Obviously, we have a significant component in our core, open-ended Japan income fund, but not in development.”
More than 85% of the commitments came from returning investors, who had previously invested with the predecessor fund, GLP JDP III, he said.
CPP Investments was one repeat investor.
Wessel said the fund would soon reach its full target. “We have identified the investors, and it is now about execution. We expect the investors to come in prior to year-end.”
Gilles Chow, managing director and head of real estate North Asia, CPP Investments, said the positive outlook for Japan’s logistics sector, underpinned by rapid growth in e-commerce, had laid a solid foundation for the success of the new venture.
“As a long-term investor, we are confident that working with a trusted and experienced partner such as GLP will generate sustainable returns over time for CPP contributors and beneficiaries,” he said.
GLP had secured its first strategic sites in Tokyo, giving the fund “30% immediate seed pipeline”, he added.
Yoshiyuki Chosa, president of GLP Japan, said: “GLP JDP IV will feature our flagship Alfalink projects. These promote supply chain optimisation by creating modernised, end-to-end, digitalised solutions to help customers meet complex and rapidly-evolving supply chain needs.”
With the first projects expected to be complete around 2026, Wessel said the options would be to sell the listed GLP J REIT to an unlisted GLP Japan income Fund, or to the open market.
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