Singapore’s GLP raises capital to fund acquisition of 3 logistics facilities in China that cover major supply chains

The GLP China real estate investment trust (C-Reit) issued 438 million shares at a price of 4.228 yuan per unit

Leasing activity of logistics assets in mainland China picked up in the first three months of the year, according to CBRE

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GLP Park, Lingang, Shanghai. Photo: Handout

Published: 9:15pm, 6 Jun 2023Updated: 9:47pm, 6 Jun 2023

Singapore-based GLP Group has raised 1.8 billion yuan (US$260 million) of fresh capital in a follow-on equity offering to help fund its acquisition of three logistics assets in mainland China, according to a company statement.

The GLP China real estate investment trust (C-Reit) successfully completed the capital-raising activity, issuing 438 million shares at a price of 4.228 yuan per unit, at the top end of an initial range provided, according to the statement on Tuesday.

“Proceeds will be used to acquire three logistics facilities – GLP Park Qingdao Qianwan Port, GLP Park Jiangmen Heshan and GLP Chongqing Urban Distribution Logistics Centre, expanding GLP C-Reit’s portfolio to comprise 10 modern logistics assets with a total leasable area of 1.16 million square metres,” the company said.

“All assets are strategically located in China’s core logistics hubs to support regional supply chains. These include the Beijing-Tianbei-Hebei region, Yangtze River Delta, Guangdong-Hong Kong-Macau Greater Bay Area and Chengdu-Chongqing Economic Circle,” it added.

GLP C-Reit was among the first batch of Reits approved in China in 2021. The company’s bet on the segment comes amid a mixed outlook for the asset class in China.