Singapore’s GLP will do something it has never done before with this US$1.6 billion private equity fund

Asia’s biggest warehouse operator, GLP, has established a 10 billion yuan (US$1.6 billion) private equity fund in China, in line with its strategy to pioneer a “technology-led logistics ecosystem”, according to a company statement.

The Hidden Hill Modern Logistics Private Equity Fund will be GLP’s first fund investing in a sector other than real estate. Investors in the fund include institutional investors and insurance companies, including China Post Capital.

“The fund will invest in adjacent growth sectors that complement GLP’s real estate business, with a focus on companies employing technology to enhance efficiency in the logistics industry,” said Ming Mei, co-founder and CEO of GLP in a statement.

Earlier this year, Alibaba Group said its Cainiao logistics unit is working on driverless vehicle technology as part of its drive to improve its courier services following JD.com’s decision to use self-driving vans to deliver orders by June in Tianjin.

GLP has US$50 billion of assets under management, with a real estate portfolio spanning 62 million square metres across eight countries.

GLP was privatised in a management buyout in January for US$11.6 billion, reflecting the biggest-ever private equity acquisition by value. GLP delisted from the Singapore stock exchange in January following the privatisation.