Singapore-based warehouse developer GLP has set up a US$5 billion income fund focused on logistics properties across China, supported by existing as well as new investors including insurance giants AIA and Allianz.

The new fund—called GLP China Income Partners V—recapitalizes a portfolio of assets developed by GLP China Logistics Fund I, which had been set up in 2013 with US$1.5 billion in initial capital commitments from institutional investors.

The properties now comprise 54 prime logistics facilities with a combined gross floor area of over 5 million square meters across 27 key locations in China.

“GLP CIP V represents a significant milestone for our business and could not have been possible without the hard work and dedication of our team to create a coveted portfolio in one of the most sought-after real estate asset classes,” Teresa Zhuge, executive vice chairman of GLP China, said in a statement on Wednesday.

“Logistics continues to prove its resiliency and strong growth potential, and we look forward to continuing to create value for our investors over the long-term.”

Danny Phuan, Head of Acquisitions Asia Pacific & Head of China, Allianz Real Estate said: “Investing in logistics is a high conviction global theme for us.

“The sector continues to benefit from strong market fundamentals such as supply-chain reconfiguration and the expansion of e-commerce. Alongside this, China represents an excellent investment opportunity for our investors over the long term and investing with partners like GLP and other like-minded investors makes this an exciting opportunity.”

GLP China’s logistics assets and land holdings total in excess of 49 million sqm. GLP is also one of the largest independent data centre operators in China with existing assets that will deliver approximately 1.4 gigawatts (“GW”) of IT capacity upon completion.

Through its strategic partnerships, the firm’s renewables portfolio in China comprises over 3 GW of generating capacity across solar and wind.

Demand for warehouse space has increased particularly from e-commerce players, whose businesses boomed in the past two years as consumers stuck at home during the pandemic turned to online shopping and food deliveries. Tenants in the recapitalized logistics assets are primarily e-commerce firms and third-party logistics providers, according to GLP.

Backed by investors including Chinese billionaire Zhang Lei’s Hillhouse Capital, HOPU Logistics Investments, and GLP cofounder and CEO Ming Mei, GLP operates across Brazil, China, Europe, India, Japan, the U.S. and Vietnam.

It has more than US$120 billion in assets under management, including logistics real estate, data centers and renewable energy facilities.

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