SHANGHAI (Sept 11): GLP, the provider of modern logistics facilities, is partnering with GIC, Singapore’s sovereign wealth fund, to establish a new fund in China.

The US$2 billion ($2.8 billion) USD-denominated value-add venture will focus on income-generating logistics facilities in China. GLP China is the asset manager and will contribute seed assets to the fund.

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

Lee Kok Sun, Chief Investment Officer of GIC Real Estate, says: “We believe high consumption growth, especially of e-commerce, will continue to drive demand for high-quality logistics properties in China. This venture will enable us, as a long-term value investor, to capitalise on the structural growth of the logistics sector in China. We look forward to partnering with GLP, a leading operator and developer of logistics assets, to acquire income-generating logistics assets across China.”

GLP says the transaction is in line with its fund management strategy.

GLP has over US$50 billion of assets under management across its real estate and private equity segments and is committed to further expanding its fund management platform through establishing new funds and increasing its capital recycling initiatives.