Singapore-listed Global Logistics Portfolio (GLP) has announced plans to launch a €2 bn European logistics development fund with Canadian partners QuadReal Property Group and CPPIB.
The fund, GLP Continental Europe Development Partners I (GLP CDP I), will receive €1 bn in equity from its investors, including €450 mln from pension fund CPPIB.
The vehicle, which is expected to reach a size of €2 bn when fully invested, will focus on developing modern logistics facilities in Continental Europe - specifically in Germany, France, Italy, Spain, the Netherlands and Belgium.
In a statement, GLP said that the new fund will help it 'capture significant growth opportunities in Europe', given its first two European funds are fully allocated. GLP raised $4 bn (€3.5 bn) for the two funds GLP Europe Income Partners I (GLP EIP I) and GLP Europe Development Partners I (GLP EDP I) from investors including Korea Fire Officials Credit Union, Oxford Properties, QuadReal Property Group and Tesco Pension Investment. GLP manages both funds and retains a 13% stake.
With GLP CDP I, GLP will have three funds in Europe totalling more than €6 bn of AUM when fully invested.
GLP entered the European market in December last year through its acquisition of European logistics specialist Gazeley from New York-listed real estate manager Brookfield for €2.4 bn.
'The proposed establishment of GLP CDP I reflects the confidence that institutional investors have in GLP and Gazeley, our Europe platform,' said Ming Mei, co-founder and CEO of GLP. 'We are committed to a long-term growth strategy in Europe. Demand from institutional investors to partner with GLP remains strong and we see opportunities to expand our fund management platform further.'
Andrea Orlandi, managing director, head of real estate investments – Europe, at CPPIB, added: 'This partnership deepens our longstanding relationship with GLP, one of our largest global partners and establishes a new relationship with QuadReal. GLP CDP I is a key part of our development-led growth strategy in the logistics sector globally, and will significantly enhance our existing holdings in Continental Europe. We expect GLP CDP I to grow quickly in scale and perform well over the long term given rising e-commerce sales and consumer demand for ever-shorter delivery times in Europe.'