GLP hits final close of Japan logistics fund with US$3.7B in commitments

Japanese 1,000 yen notesJapanese 1,000 yen notes

GLP has reached the final close of its Japan logistics development fund, GLP Japan Development Partners IV, or GLP JDP IV, with 412 billion yen, or around US$3.7 billion, in commitments, making it Japan’s largest-ever private real estate fund, the investment manager said in a press release Wednesday.

The fund’s close comes as supply-chain bottlenecks and consumers’ increasing shift to online shopping has spurred greater investor interest in logistics-related real estate globally.

Within Japan, much of the existing logistics real estate was developed during a “mass supply” period in the 1970s and is reaching the end of its useful life, according to a prospectus for Daiwa House Logistics Trust, a Japan logistics REIT recently listed in Singapore. Japan’s logistics property vacancy rate was under 2 percent as of the first quarter of 2021, the prospectus said, citing data from Independent Japan Logistics Market Study Report.

GLP JDP IV, which was launched in October 2021, was more than 2 times oversubscribed based on its initial target size of 300 billion yen, and was closed at its hard cap of 412 billion yen, GLP said.

The latest round of fundraising for GLP JDP IV was 101 billion yen from nine institutional and domestic investors, the statement said.

The commitments came from from pension funds, sovereign wealth funds and insurance companies from across North America, Asia and the Middle East, GLP said.

GLP JDP IV will develop modern logistics properties in Japan, with a focus on large-scale projects in the greater Tokyo and Osaka regions, the statement said.

The GLP JDP IV fund will bring GLP’s assets under management in Japan logistics strategies to US$30 billion across five private funds and a Japan-listed REIT (J-REIT), the release said.

Ralf Wessel, managing director for fund management at GLP, said in the statement: “The successful GLP JDP IV fundraise on such a short time scale is another strong vote of confidence from our investors. We see a significant interest uptick among domestic institutions who have participated in our development fund series for the first time following a significant representation in our core, open-ended Japan income fund. We are pleased to provide our institutional investor partners continued access to this market opportunity.”

The GLP Japan Income Fund, or GLP JIF, a private open-ended core strategy launched in August 2020, has more than 300 billion yen in total capital commitments from more than 50 international and domestic institutional partners, the statement said. GLP JIF invests in high-quality properties in Japan.

GLP, formerly known as Global Logistics Partners, was listed on SGX in 2010, but was delisted in 2018 in a US$12 billion deal after a winning bid from China-based private equity consortium including Hopu Investment Management, Hillhouse Capital Group, property developer Vanke Group, SMG and the investment arm of Bank of China.