Singapore Stock Exchange-listed Global Logistic Properties (GLP) says the company has launched a US$3 billion China-focused logistics infrastructure fund to develop modern logistics facilities in China, according to a company announcement.
The fund has already received a total of US$1.5 billion capital commitment, with leverage allowing for an investment capacity of over US$3 billion over three years.
The fund will invest to develop modern logistics facilities, capturing the opportunities in domestic consumption and the shortage of modern logistics facilities in China.
Six other institutional investors including sovereign wealth funds and pension funds from Asia, Europe and North America are investing alongside GLP.
GLP is the asset manager and will retain a 56% stake in the fund.
The vehicle will invest in new, wholly-owned logistics development projects in China during the three year investment period.
"As demand for modern logistics facilities in China continues to grow…CLF Fund I ensures we will have increased funding in place to capture a significant share in a US$2 trillion market opportunity,” says Jeffrey H. Schwartz, co-founder of GLP.
GLP is a warehouse developer largely owned by Singapore’s sovereign wealth fund GIC Private. With this new fund, the company’s total assets under management will increase to US$11.4 billion.