GLP Capital Partners (“GCP”) establishes new China advanced research and manufacturing (“ARM”) strategy with initial investment capacity exceeding $350 million
SHANGHAI AND SINGAPORE, 14 February 2024 – GLP Capital Partners (“GCP”) has entered into an agreement to establish a new strategy, GCP China Advanced Research Manufacturing Value-Add Partners (“CAVP”). The fund offers an initial investment capacity exceeding $350 million and will target industrial park investments with an ARM focus in China’s core economic hubs.
CAVP will initially acquire a high specification industrial park from GLP’s balance sheet located in Beijing with over 140,000 SQM of net leasable area, serving customers in high-end automobile manufacturing, aviation, autonomous driving and renewable energy industries. Developed and managed by GLP, the park’s excellent operational performance has positioned it as a flagship ARM facility in the region.
The fund will also be able to acquire additional assets that target a broad range of ARM industry tenants, including new energy vehicle producers and smart manufacturing tenants who are establishing domestic manufacturing bases as part of China’s ‘New Economy’ drive to support strategic emerging sectors of the future.
China is the world’s leading manufacturer and in recent years has accounted for approximately 30% of all global manufacturing output1. The transformational shift to higher-tech, full-spectrum product manufacturing is a key objective for the country and is driving continued investment growth in high-tech manufacturing industries.
“High-tech manufacturing remains a bright spot and we continue to believe in the long-term fundamental demand for this sector as the transformation and upgrading of traditional industries continues to accelerate. We look forward to expanding this fund as we capitalize on the opportunities that we’re seeing,” said Tim Wang, Co-President of Logistics and Industrial Real Estate, GCP China.
“By leveraging our deep operating expertise and best-in-class asset management capabilities, we continue to focus on markets with strong fundamentals, durable demand drivers and high barriers to entry. We are pleased to provide investors access to GLP incubated and managed ARM facilities as we progress on our capital recycling goals. We will continue to utilize our insights and create value for investors by capitalizing on the continued rise of the New Economy,” commented Teresa Zhuge, President of China at GCP.
With the addition of CAVP, GCP has in excess of $3.5 billion of investable capital targeting logistics/industrial parks with an ARM focus. This includes China Income Fund X comprising a 970,000 SQM portfolio of advanced manufacturing and warehousing logistics parks and China Income Fund XII with 2.2 million SQM of logistics and business park assets.
1. 2022 data from the Ministry of Industry and Information Technology↩
About GLP Capital Partners
GLP Capital Partners (“GCP”) is a leading global alternative asset manager that focuses on thematic investing across real assets and private equity. With $126 billion in total assets under management across 57 funds as of 30 September 2023, GCP has a strong history of leadership in high-growth Asian markets and a track record of success at scale in the US, Europe and Brazil. GCP is the exclusive investment and asset manager of GLP Pte Ltd. To learn more about GCP, visit www.gcp.com.
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