GLP Closes on First China Office Fund, Aims at Value-Add Projects

Yingdu Mansion Block D

GLP has been remodeling Yingdu Mansion Block D right into a tech hub

GLP mentioned final week that it has closed on its China Office Value Add Fund I, the primary city renewal fund within the nation for the Singapore-based warehouse specialist.

The institution of the fund displays the technique of GLP China to actively help city renewal and promote funding in know-how, innovation and workplace properties, in line with a launch posted on the corporate’s Chinese-language web site.

Office Investment

As a part of the fund’s actions, GLP is renovating Building D of Yingdu Mansion in Beijing’s Zhongguancun know-how hub with a aim of upping the venture’s enchantment as a house for high-tech and artistic occupiers in China’s capital.

“Through transformation and operational optimisation, GLP’s skilled staff is dedicated to creating a greater work expertise and concrete growth,” mentioned Teresa Zhuge, government vice chairman of GLP China.

Betting on Beijing

GLP bought Building D of Yingdu Mansion for an undisclosed sum in late 2020 from a single-asset REIT managed by Huayuan Group. The venture on the fringe’s of Beijing’s prime innovation hub is now totally leased to tech occupiers on long-term contracts, in line with GLP’s announcement.

Teresa Zhuge GLP

Teresa Zhuge of GLP

The constructing on Zhichun Road in Haidian district has ​​greater than 30,000 sq. metres (322,917 sq. toes) of area and is close to many prime universities and scientific analysis establishments. With sturdy demand for modern and entrepreneurial workplace area, the property has nice potential industrial worth after the renovation, in line with GLP.

Zhuge mentioned the value-add fund would assist meet prospects’ want for sensible and sustainable workplace area whereas offering buyers a chance to take part in city renewal tasks.

GLP acquired one other Beijing workplace constructing, the ZT International Center, from native actual property agency Zhaotai Group for $522 million within the first quarter of this 12 months, in line with Real Capital Analytics’ Capital Trends report for the interval. Investment financial institution Founder Securities occupies 20,000 sq. metres of the 124,000 sq. metres of workplace area within the constructing at East 2nd Ring Road.

Business Park Power

Although greatest recognized for logistics growth, GLP additionally instructions a portfolio of enterprise parks in mainland China. GLP I-Park owns and manages practically 30 parks with a gross flooring space of 5 million sq. metres and practically 400 company prospects, representing a complete funding of over RMB 30 billion ($4.7 billion).

Office Investment

In May, GLP-backed ACR Asset Management acquired the Beijing Diamond Plaza constructing at Zhongguancun Software Park from non-public fairness agency Sino-Ocean Capital for an undisclosed quantity. ACR introduced in July that Japanese developer Mitsubishi Estate was taking an fairness stake within the fully-occupied 22,000 sq. metre property.

Mingtiandi understands that the Diamond Plaza stake sale represents the preliminary deal below a co-investment platform between Mitsubishi Estate and ACR, which was based by former Cushman & Wakefield better China CEO Edward Cheung.

Ming Mei, GLP’s co-founder and chief government, holds those self same titles at ACR, and Teresa Zhuge sits on ACR’s board.

New Economy Infrastructure

GLP can be one of many largest impartial information centre operators in China, with property anticipated to ship 1,400 megawatts of IT capability upon completion. Bloomberg reported in May that Chinese agency GDS was contemplating shopping for GLP’s information centre enterprise for as a lot as $10 billion.

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More consistent with its conventional pursuits, GLP final month introduced a primary closing of its China Logistics Fund III at $1.75 billion, representing the lion’s share of the event automobile’s $2 billion goal. The freshly-committed capital will go in the direction of creating the following era of logistics services in APAC’s largest market, together with sensible warehouses with built-in applied sciences to satisfy evolving buyer necessities.

GLP has $72 billion in property below administration in China throughout logistics, information centres, renewable vitality and personal fairness methods, together with the itemizing of the primary logistics C-REIT on the Shanghai Stock Exchange in June.

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