Singapore’s sovereign wealth fund GIC has partnered with Global Logistic Properties (GLP) to establish a US$2bn (€1.7bn) fund to own value-add, income-producing logistics facilities in China.

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.”

Lee said the venture will enable GIC to capitalise on the structural growth of the logistics sector in China.

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

Ming Mei, GLP’s co-founder and CEO, 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.”

GIC was a foundation shareholder in GLP and held almost 37% stake in the logistics group when it was listed on the Singapore exchange. The sovereign wealth fund sold its stake to a consortium that bought GLP and took it private early this year.

Mei said the latest transaction with GIC is in line with GLP’s fund management strategy.

In February, GLP teamed up with the state-owned insurer China Life to form a RMB10bn (€1.25bn) value-add fund to target Chinese logistics, and last month GLP raised US$4bn for two European funds. 

GLP currently has more than US$50bn of assets under management.

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