GLP fund receives US$32m injection

MAINBOARD-LISTED Global Logistic Properties (GLP) said before market opened on Thursday that a co-investor has pumped US$32 million into a fund established to hold a newly acquired US$1.1 billion logistics portfolio from Dallas-based developer Hillwood.

The contribution from the co-investor, made on Dec 21, is deemed as initial syndication, and corresponds to 9.7 per cent of the aggregate capital contributions made to the fund

GLP through its indirect wholly-owned subsidiary, New Harvest Holdings LLC, and six institutional investors have committed US$620 million of equity to the fund.

Following the initial syndication, the interest of New Harvest in the fund and its subsidiaries has been reduced to about 90.3 per cent from 100 per cent.

On Dec 14, GLP said the fund will have a total investment capacity of US$1.5 billion. The fund will acquire US$700 million from Hillwood in December 2016 and a further US$400 million of assets from Hillwood upon full-lease up. It carries another US$400 million of investment mandate beyond the US$1.1 billion identified acquisition targets from Hillwood.