Asset manager GLP Capital Partners said on Monday it had partnered with a global institutional investor in raising 10 billion Chinese yuan ($1.4 billion) for its China Income Fund XII, which would own 25 logistics and business parks in China.

GLP, which has offices in Shanghai and Singapore, did not disclose the identity of the global institutional investor in its statement.

The fund was injected with 25 logistics and business park assets from GLP‘s balance sheet, with total leasable area of over 2.2 million square metres (23.7 million square feet).

The assets are situated in locations including the Yangtze River Economic Belt, the Beijing-Tianjin-Hebei and the Greater Bay Area regions in China, GLP said.

“We have strong conviction in the solid fundamentals and growth prospects of new economy asset classes such as modern logistics parks, technology parks and hi-tech manufacturing parks,” said its China president, Teresa Zhuge.

GLP said the assets are occupied by a “diversified blue-chip tenant base” including e-commerce, automotive, third-party logistics players, alternative energy and high-tech manufacturing companies.

Industrial operations in China, especially in the hi-tech manufacturing sector, have experienced rapid growth driven by favourable government policies and resilient global demand for consumer products, GLP said.

GLP manages around $59 billion assets in China, according to its statement.

Reuters