Warehouse operator GLP launches US$2 billion China logistics fund with Singapore’s GIC

GLP, Asia’s largest warehouse operator, has launched a US$2 billion China fund in partnership with Singapore sovereign wealth fund GIC as it continues to tap into the growing demand for warehousing fuelled by a boom in e-commerce and domestic consumption.

“This fund provides long-term capital to further strengthen our dominant network in China,” Ming Mei, co-founder and CEO of GLP, said on Tuesday. “We continue to see significant customer demand for our integrated logistics solutions and look forward to continuing to build out relationship with GIC.

GLP is the fund’s asset manager and will contribute seed assets to the fund, which will focus on existing income-generating facilities in China.

This is GLP’s second China focused fund in seven months. In February GLP teamed up with state-owned insurer China Life to create a fund with total equity commitments of 20 billion yuan to acquire completed logistics and industrials assets in China.

Already the largest owner of logistics facilities in China, GLP’s 30 million square metres of modern sheds focus on domestic consumption and account for roughly half of their global business. They cater to industries ranging from e-commerce, to third party logistics providers, retailers and manufacturers.

The company aims to continue expanding in China through future funds and capital recycling initiatives.