TSE – GLP holds second close of Japan-focused income fund at $5.4b

Logistics real estate investor GLP has held a second close for its GLP Japan Income Fund (GLP JIF), reaching 560 billion yen ($5.4 billion), according to an announcement.

GLP JIF, Japan’s largest private open-ended logistics real estate income fund, attracted more than 20 international and domestic limited partners to invest alongside GLP in this round.

GLP managing director in Singapore Ralf Wessel said the second close exceeded the firm’s initial target offering.

In August, GLP announced the launch of GLP JIF with a $2.6-billion first close. The majority of investors in the fund are new to GLP and include pension funds, financial and insurance companies and sovereign wealth funds. The Canada Pension Plan Investment Board is amongst these investors.

GLP JIF was seeded with 11 assets in Greater Tokyo and Osaka. Funds from the second close will be used to acquire three additional assets in Tokyo as well as other market opportunities, the firm said.

The combined 14 assets, which are 100% leased and include nine LEED Gold and Platinum certified developments, total over 1.3 million square metres of gross floor area and provide long-term stable cash yields to investors.

“We launched GLP Japan Income Fund in response to investor demand for cash yields and access to GLP’s proprietary pipeline of newly developed, income-producing logistics assets,” Wessel said.

The second close of GLP JIF has brought GLP’s assets under management in Japan to $22 billion.

In 2018, GLP launched its third Japan-focused logistics real estate fund – GLP Japan Development Partners III – with a mandate to invest $5.6 billion. This third Japan-focused fund is a follow-on venture to GLP Japan Development Venture I and II.

The firm is also the sponsor and manager of GLP J-REIT, a real estate investment trust which was listed on the Tokyo Stock Exchange in December 2012, in one of Japan’s largest real estate IPOs.

The $97-billion real estate fund manager has added approximately $15 billion of assets under management to its logistics strategies and launched five new logistics funds over the last 12 months, including the $2.1 billion GLP China Income Fund and a joint venture in Vietnam.