GLP reportedly planning major investment in Chinese infrastructure and warehouses.
Global Logistic Properties Ltd (GLP) reportedly plans to set up its second China logistics infrastructure fund with seven investors and also invest up to $7bn in the sector over the next four years. According to a report published last night (20 July) on Reuters, GLP said the partners in the investment project will include national pension funds and sovereign wealth funds from Asia, North America and the Middle East. The Reuters article added that GLP said it would hold a 56% stake in the venture, and that $3.7bn of equity had already been committed to the fund.
According to Reuters, GLP has estimated that only 20%-30% of China’s warehouses could be regarded as “modern” and the company believes the country will need to ramp up its infrastructure in order to cope with the e-commerce boom.
“Despite all the news headlines about GDP slowing down, retail and consumption continue to be quite strong, and also e-commerce will continue to grow and penetrate second- and third-tier cities,” Ming Mei, chief executive officer at GLP, was quoted as saying by Reuters.
