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Update: GLP sets up US$7 billion China fund to develop logistics infrastructure
Logistics facilities owner Global Logistic Properties (GLP) has set up a US$7 billion fund to develop modern logistics facilities in China, it said in a Singapore Exchange filing on Tuesday.
Its second China-focused logistics infrastructure fund has already got US$3.7 billion of equity committed by GLP and other investors with leverage allowing for an investment capacity of US$7 billion to develop 13 million square meters or 140 million square feet over four years, the group said.
It added that the fund expects to start acquiring land later this year and begin the construction of new developments in April 2016. GLP China manages and holds a 56 per cent stake in the fund.
The group noted that its first China development fund of US$3 billion was launched in November 2013 and has reached its investment capacity.
"China remains our primary market for development. The fund management platform is an important source of capital for GLP and we remain focused on leveraging it to scale our business effectively while driving higher risk-adjusted returns," said GLP chief executive Ming Z Mei in a statement.
GLP shares closed five cents up at S$2.55 each on Monday.