Real estate investment manager GLP today (January 19) announced the final close of its flagship Japan logistics development strategy GLP Japan Development Partners IV (GLP JDP IV), with 412 billion yen (US$3.7 billion) of total commitments from a well-diversified investor group of pension funds, sovereign wealth funds and insurance companies in North America, Asia and the Middle East.
GLP JDP IV is approximately 65% larger than its immediate predecessor fund, the 2018-vintage GLP JDP III, and represents the largest-ever amount of capital raised for a Japan-focused private real estate strategy. It is expected to reach over 1 trillion yen (US$9.1 billion) of assets under management when fully deployed.
Launched in October 2021 to develop modern logistics facilities in Japan, in particular large-scale projects in the greater Tokyo and Osaka regions, GLP JDP IV was more than 2.0x oversubscribed based on the initial target size of 300 billion yen and closed at its 412 billion yen hard cap. The latest round of fundraising for GLP JDP IV totalled 101 billion yen from nine international and domestic investors, marking strong momentum and continued demand by investors for opportunities in the logistics sector.
Singapore-headquartered GLP has been active in the Japanese market, with GLP Japan Income Fund (GLP JIF) – the company’s private open-ended core strategy – surpassing 300 billion yen in total capital commitments. GLP JIF was launched in August 2020 to provide long-term stable returns by investing in high-quality and well-designed properties in Japan. To-date, more than 50 international and domestic institutional partners have committed to the fund.
Ralf Wessel, managing director, fund management, at GLP, comments: “The successful GLP JDP IV fundraise on such a short time scale is another strong vote of confidence from our investors. We see a significant interest uptick among domestic institutions who have participated in our development fund series for the first time following a significant representation in our core, open-ended Japan income fund. We are pleased to provide our institutional investor partners continued access to this market opportunity.”
GLP’s logistics business in Japan spans a total gross floor area (GFA) of 10 million square metres of completed assets, properties under development and land holdings. GLP’s overall lease ratio in Japan remains high at 99%.
Since inception in 2011, GLP’s Japan development funds have delivered in excess of 2.7 million sqm of state-of-the-art, highly efficient developments and continues to set the industry benchmark in terms of design and building specifications, the firm says.
More than 80% of the assets developed within GLP’s Japan development funds (by GFA) are green-certified, including nine LEED Gold and three LEED Platinum. The developments aim to obtain certifications such as LEED, CASBEE and ZEB, will be equipped with solar panels to offset energy usage, and include amenities that support the wellbeing of workers and local communities including day-care centres, restaurants, convenience stores and more.
With the establishment of GLP JDP IV, GLP manages over US$30 billion AUM of logistics strategies in Japan across five private funds and a listed J-Reit.