SHANGHAI/PRNewswire/
-- GLP, the leading global provider of modern logistics facilities,
today announced the establishment of the largest China-focused
logistics infrastructure fund, CLF II ("the Fund"). Seven leading
global institutions, including some of the world's largest national
pension and sovereign wealth funds, are investing alongside GLP to
develop modern logistics facilities in China. 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 ("sqm")
(140 million square feet ("sq ft")) 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. CLF II is more than double the size of
CLF I (US$3
billion) given the size of the market opportunity and strong
demand from investors. 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[1].
Mr. Ming Z.
Mei, Chief Executive Officer of GLP said, "Building on the
strong performance of CLF I, the successful closing of CLF II
reflects the confidence of institutional investors in GLP's proven
track record as an operator, developer and fund
manager. 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."
CLF II
will be GLP's exclusive vehicle for new, wholly owned logistics
development projects in China.
The Fund expects to start acquiring land later this year and
commence construction of new developments in April
2016. CLF II carries a similar investment mandate as CLF I,
GLP's first China development
fund which was launched inNovember
2013 and has reached its investment capacity.
Both
CLF I and CLF II seek to capture the significant opportunities
arising from the shortage of modern logistics infrastructure
in China.
Demand for modern warehouse facilities is driven by growing
domestic consumption, urbanization and the growth in e-commerce.
GLP has a strong track record of developing in China.
Its portfolio has grown at a 61% compound annual growth rate over
the last decade, and today encompasses 11.8 million sqm (127
million sq ft) of completed facilities. This transaction will build
upon the company's market-leading position, with on-the-ground
execution by one of the best teams in the industry.
With
CLF II, GLP's fund management platform expands 36%
to US$27.1
billion. Five of the Fund investors are fromAsia,
one from North
America and one from the Middle
East. Of the seven, four investors are partners in CLF I and
two are new to GLP's fund management platform. GLP's fund
management platform is scalable and has grown at an annual rate of
95% since FY12.
M3
Capital Partners (HK) Limited served as exclusive financial advisor
to GLP in connection with the formation of the Fund.
[1]
Potential fees and promotes based on the AUM and fee structure of
GLP's existing development funds. Promotes assume all requisite
triggers are satisfied and not discounted. No assurance can be
provided that these assumptions may materialize.
About GLP (www.glprop.com)
GLP is a leading global provider of modern logistics
facilities. As of 31 March
2015, GLP's US$28
billion property portfolio encompasses 41 million
square meters (441 million square feet) of logistics facilities
across China, Japan,Brazil and the
United States.
GLP remains focused on being the best operator in each of its
markets, creating value through developments and expanding its fund
management platform. GLP's customers include some of the world's
most dynamic manufacturers, retailers and third party logistics
companies. Domestic consumption is a key driver of demand for
GLP.
The Group is listed on the Mainboard of Singapore Exchange
Securities Trading Limited (SGX stock code: MC0.SI; Reuters ticker:
GLPL.SI; Bloomberg ticker: GLP SP).
GLP Investor Relations & Media
Contact:
Ambika
Goel, CFA
SVP- Capital Markets
and Investor Relations
Tel: +65
6643 6372
Email: [email protected]
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