Global Logistic Properties (GLP) has established its first China value-add fund with a single investor, China Life.
The vehicle aims to have total equity commitments of RBM10bn (€1.3b).
The Singapore-based company said the fund will focus on acquiring completed logistics and industrial assets in China.
The fund will come under GLP China, which will manage its assets. It will also contribute seed assets to the joint venture.
Teresa Zhuge, GLP China’s vice chairman, said the deal 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 continues to be strong and we plan to establish additional new income funds in China.”
China Life, one of China’s largest insurers, said it believed in the long-term fundamentals of the logistics industry.
“The industry is a key cornerstone of China’s economy while GLP has a proven track record and reputation for execution,” it said in the statement.
Following this transaction, GLP’s fund management platform expands to US$46bn (€37.5bn), which represents an annual growth rate of 56% since 2011.