GLP establishes US$7b China logistics infrastructure fund

Backed by seven institutional investors.

Global Logistic Properties today revealed that it has established a US$7 billion China-focused logistics infrastructure fund, backed by seven leading institutional investors.

The fund, known as CLF 2, is the world's largest China-focused logistics infrastructure fund.

US$3.7 billion of equity has been committed to the fund by GLP and investors, with leverage allowing for an investment capacity of US$7 billion to develop 13 million square meters over four years.

GLP China is the manager and holds a 56% stake in CLF II. China is GLP’s primary market for development with development starts growing at 30% per annum. 

GLP said that CLF II is more than double the size of CLF I at US$3 billion given the size of the market opportunity and strong demand from investors.

GLP added that the offering was significantly oversubscribed and provides long-term capital that enables GLP to strengthen its network effect, better serve customers and de-risk its development pipeline. Fees and promotes earned on partners’ capital enhance GLP’s returns by 400-500 basis points.