GLP Capital Partners Closes $2.3B Logistics Fund
It says it is the largest discretionary closed-end fund focused on North American logistics real estate ever raised.
GLP Capital Partners of GCP has closed what it says is the largest discretionary closed-end fund focused on North American logistics real estate ever raised.
At over $2.3 billion the fund, GLP Capital Partners IV, exceeded its parent’s $2 billion target.
The fund is capitalized by a diverse group of domestic and international institutional investors, including public and corporate pensions, sovereign wealth funds, insurance companies, asset management firms, endowments, and family offices.
It aims to invest in institutional-quality logistics assets located in infill and key distribution markets.
At its closing, it was over 50% committed to investments with a portfolio comprising more than 25 million square feet in markets such as Southern California, Eastern Pennsylvania, Seattle, Portland, and South Florida.
GLP called the fund one of the largest first-time discretionary real estate funds in history.
With its red hot fundamentals, the industrial market has become highly competitive to investors. Industrial assets traded at a nearly 31% premium over 2020 prices in the second quarter, clocking in at a national average of $113 per square foot, according to CommercialEdge. It also found that an estimated $23.3 billion of sales have closed so far this year, putting 2021 on pace to surpass last year’s record $45 billion in deals. That increase will likely be driven by an increase in the average sales prices, not an increase in the total number of sales.
Industrial demand has skyrocketed over the course of the pandemic and shows little sign of relenting. E-commerce now represents more than 17% of all core retail sales, and data center demand has ballooned over the course of the pandemic thanks to the migration of work, socializing, and schooling to online platforms. And cold storage and last mile demand has ticked up as the economy continues to recover post-COVID.
“These factors have converged to propel investor interest in industrial assets to new heights,” the report notes.