GLP has raised RMB2.9bn (€370m) in a single close for its GLP China Income Fund (CIF) II vehicle and has fully seeded the China-focused logistics real estate fund – which has a total investment capacity of RMB5.8bn – with 13 assets.
GLP said it raised the equity from four domestic institutional investors, one of whom is new to GLP.
Teresa Zhuge, GLP China’s executive vice chairman, told IPE Real Assets: “The launch of GLP CIF II is consistent with several key elements of our strategy, including recycling assets and further growing our fund management platform.
“Demand from institutional investors to partner with GLP in China continues to be strong and we plan to establish additional new income and development funds there.”
Zhuge said GLP was transforming into an “asset-light” company from a logistics property owner by selling its mature logistics properties to the funds it formed continuously. These assets remained under GLP management.
“This (strategy) allows GLP to monetise the assets and invest for expansion,” she said, adding that, over the past three years, GLP had raised nearly US$9bn (€7.4bn) of core and value-add funds in China – and more than US$20bn globally.
“We plan to continue acquiring and developing assets through our fund management platform, which allows us to recycle capital from stable, income-producing assets,” Zhuge said. Fund management was “an important and growing part of the group’s business”.
GLP launched GLP CIF I a year ago, and that fund is now fully invested with assets under management totalling US$2.1bn.
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