A Middle Eastern consortium has invested 10 billion yuan in GLP.
A landmark scene unfolds.
According to investment industry sources, GLP Pte Ltd (hereinafter referred to as "GLP") has officially announced that it has received a strategic investment of $1.5 billion (over 10 billion RMB) from the Abu Dhabi Investment Authority (ADIA) to support the next phase of GLP's business growth.
Often hailed as the "Chinese version of KKR," GLP has emerged as a formidable force in the global infrastructure arena. Since establishing its first China logistics fund in 2013, GLP's assets under management in China have reached approximately $79 billion. It has been deeply involved in the three core sectors of supply chain, big data, and new energy, gradually building a large and diversified new - economy infrastructure ecosystem.
As a limited partner in several of GLP's strategic funds, ADIA has long - standing ties with GLP. This time, this Middle Eastern trillion - dollar powerhouse has officially upgraded to a strategic investor in GLP, opening a new chapter in their in - depth cooperation. This scene is a vivid example of foreign capital's bullish outlook on Chinese assets.
$1.5 Billion: A Middle Eastern Consortium Invests in GLP
The Chinese venture capital circle is no stranger to the Abu Dhabi Investment Authority.
Founded in 1976, ADIA is a global diversified investment institution representing the Abu Dhabi government. It focuses on prudent investment and creating long - term value. With assets exceeding $1 trillion, ADIA established an office in Beijing in 2021.
Actually, ADIA and GLP are old acquaintances. ADIA has invested in several of GLP's flagship China logistics funds over the years and contributed to GLP's Brazil Development Fund II in 2021. Through its cooperation with GLP, ADIA has witnessed and participated in the rapid development of China's logistics supply chain over the past two decades, and thus shared the dividends of China's new - economy rise.
After years of cooperation, ADIA has closely monitored how the GLP team has progressed from site selection and planning, investment and development to refined operations, and witnessed the continuous expansion of its asset network. GLP's execution capabilities in the high - growth new - economy infrastructure sector have impressed the ADIA team. A series of solid performance returns have also strengthened the trust between the two parties.
Further capital injection is the most powerful proof. ADIA announced an investment of $1.5 billion in GLP, upgrading to a strategic investor in the group. The first - round deployment of funds is $500 million to help GLP achieve new growth.
Upon closer review, this move is not accidental. As the largest sovereign wealth fund in the UAE, ADIA emphasizes "long - term capital appreciation through a rigorous investment process," which implies its meticulous and prudent criteria for selecting investment sectors and targets.
Globally, driven by multiple disruptive trends such as technological transformation, economic restructuring, and energy revolution, a new infrastructure industry with trillions of dollars in investment opportunities is booming. As Greg Blank, a senior managing director at Blackstone Infrastructure, recently said, "This is undoubtedly the core trend among all current major trends, and we are actively deploying relevant investments globally." Nowadays, investors are flocking to this high - potential new - economy sector.
GLP has been in this field for over two decades and has developed a unique model that emphasizes both investment and operation. It is not only an alternative asset investment and asset management institution centered on the new economy but also an industrial service operator relying on new infrastructure assets. This differentiated model directly addresses the pain points of investment and operation in the traditional development and construction model and builds a global, open, and collaborative new - economy infrastructure ecosystem.
Generating returns for investors has always been GLP's top priority, and it has set many benchmark cases. One notable example is the 2019 deal with Blackstone. Blackstone spent $18.7 billion to acquire GLP's US industrial warehouse assets, which was the largest private real - estate transaction at that time. These core assets were purchased by GLP from Blackstone for $8 billion in 2014.
In other words, GLP achieved an asset appreciation of over $10 billion in just five years, bringing substantial returns to its investors.
From incubating new opportunities, expanding business scale to creating value through monetization and promoting the cycle of business development and capital, this has always been GLP's model. Behind it is a long - term perspective of "patient capital."
This is clearly in line with ADIA's long - term investment principle, and thus an investment with significant symbolic meaning was born. Mei Zhiming, co - founder and CEO of GLP, said, "We have been continuously expanding our cooperation with world - class investment partners. Therefore, we are very pleased to strengthen and enter a new stage of cooperation with ADIA. The new - economy sectors that GLP focuses on are experiencing long - term expansion, which contains huge market opportunities. This round of investment brings stronger financial strength and strategic recognition, which will help GLP seize new opportunities and accelerate development."
The Rise of the New Infrastructure Ecosystem
This scene is a powerful illustration of GLP's two - decade - long strategic evolution.
Today, GLP has quietly completed its transformation into a super industrial service and investment company focusing on new infrastructure in the fields of supply chain, big data, and new energy. With approximately $80 billion in global assets under management, a diversified business map including logistics warehousing, intelligent cold - chain operation services, computing power new infrastructure, new energy, and related industrial private equity investments has emerged.
Nowadays, in most core areas where logistics parks and manufacturing R & D industrial parks are concentrated, the "GLP" logo has become a common sight. As an important player in the logistics and industrial infrastructure field, GLP has built a diversified asset matrix, including logistics parks, high - end industrial plants, and science and technology innovation industrial parks. Its business is deeply rooted in China, covering 70 regional markets across the country, operating and managing over 400 parks, and forming a logistics and industrial infrastructure network with a total scale of nearly 50 million square meters.
The world is currently in a golden window period of industrial structural upgrading. GLP has also proactively explored new - economy infrastructure fields such as computing power centers, new energy, and intelligent cold - chain. Its rapid pace of layout and wide coverage far exceed industry expectations. GLP is gradually becoming synonymous with "new - economy asset management."
For example, "Puluosi Cold Chain," an intelligent cold - chain enterprise focusing on food logistics established in 2019, has built and operated 33 cold storage facilities in 23 cities in just a few years, with a total capacity of over 5.3 million cubic meters. It is one of the cold - chain logistics enterprises with the largest network coverage in China, serving over 1,000 domestic and foreign corporate customers.
Currently, the intelligent computing industry is on the rise, and GLP has taken an early position. Since 2018, it has established 20 computing power facilities across the country, with a total IT load capacity of up to 1,400 MW. More notably, GLP successfully launched its first computing power center income fund in March this year, with an investment scale of approximately 2.6 billion RMB, continuously strengthening its strategic layout of computing power underlying assets.
Picture: GLP Beijing Chaoyang Data Center
Local state - owned assets have also extended an olive branch. Recently, GLP announced that its computing power center business has received a strategic investment of 2.5 billion RMB from the state - owned assets of Quzhou City, Zhejiang Province. Through this cooperation, GLP's computing power center holding platform will be located in Quzhou Intelligent Manufacturing New City to jointly build a high - ground for the intelligent computing industry.
In the new - energy field, GLP is also fully engaged, actively deploying in multiple sub - sectors such as distributed and centralized photovoltaics, wind energy, and energy storage. As of now, its cumulative development scale has exceeded 2 GW, and the total grid - connected capacity has exceeded 1 GW. The professional capabilities built in this field are also in deep synergy with GLP's strategic goal of building green computing power and industrial infrastructure assets.
What impressed the venture capital circle most is that through its private equity investment institution, Yinsan Capital, GLP has further entered the fields of modern logistics services, digital - intelligent supply chain, new energy, and logistics technology in China and Asia. So far, it has invested approximately 16.5 billion RMB in over 110 enterprises, quietly and accurately capturing a group of star enterprises such as J&T Express, Zongteng Group, G7 IoT, Yingche Technology, Libiao Robotics, and Seer Industry.
A new new - infrastructure ecosystem is rapidly emerging, making people curious about the "GLP model." After analysis, the core advantage of this new - economy infrastructure asset management giant lies in its unique "dual - wheel drive" - one end is deeply connected to industrial needs, and the other end is efficiently connected to diverse capital. It closely combines asset investment, development, and operation management, providing continuous and stable returns for investors while opening a new paradigm for infrastructure investment.
Implementing this model is full of challenges. It depends on the team's ability to manage the entire asset life cycle, covering every key link from site selection and planning, investment and development, operation management to capital exit and recycling. It also greatly tests the resource integration ability and trend insight. This is why GLP is so unique.
Investing in China Means Investing in the Future
To some extent, GLP has built a bridge for overseas capital to invest in China.
Although registered in Singapore, the Chinese market has always been GLP's core base. It established an office in Shanghai as early as 2003. At that time, China's modern logistics was just starting, and there was a serious shortage of standardized warehousing facilities, which did not meet the needs of foreign - brand logistics operations. However, GLP entered the market and was the first to introduce international - class modern logistics warehousing standards.
In 2004, GLP reached an investment cooperation agreement in Suzhou Industrial Park, developed, constructed, and managed the GLP Suzhou Logistics Park, opening a new chapter in the evolution of China's logistics infrastructure. You may not know that the dedicated warehousing and logistics center for the 2008 Beijing Olympics was also located in the GLP Beijing Airport Logistics Park.
Since 2013, GLP's China logistics funds have started. Over the past decade, from China logistics funds to China income - enhancement funds, then to China urban renewal funds, China logistics value - added funds, and the RMB funds of Yinsan Capital, as well as GLP REIT, one of the first - batch infrastructure public REITs in China's "first - issuance + expansion - offering" dual - first - batch program, the series of diversified strategic products are the best examples of GLP's in - depth involvement and heavy investment in China.
Today, this asset management leader has established professional teams in multiple vertical fields of new - economy supply chain, computing power, and new energy in the Chinese market, forming an insurmountable barrier. They have both capital management and asset operation expertise, continuously promoting the transformation and innovation of China's modern infrastructure. Market news reveals that GLP is considering an IPO in Hong Kong, which has attracted wide attention.
In the process of in - depth development in the Chinese market, GLP also actively plays a key role in connecting overseas capital with local new - economy opportunities. It integrates global experience and resources, supports China's economic and industrial development, and helps global institutional investors and partners discover and seize new opportunities in the Chinese market.
It is reported that GLP has cooperated with over 140 investment institutions of various types, most of which are long - term capital and industry - leading institutions. Taking 2024 as an example, the new capital injected by GLP and its managed funds into the Chinese market reached $2.24 billion.
Since this year, the global capital allocation has been quietly changing. Uncertainties such as the weakening of the US dollar have driven funds from the US market to undervalued areas. Due to China's economic resilience and industrial dividends, it has become one of the main destinations for foreign capital to increase their allocations. Against the backdrop of the re - evaluation of Chinese assets, the scene of foreign capital aggressively buying Chinese assets is vivid.
China's rapidly developing logistics warehousing, computing power infrastructure, and new - energy infrastructure have become the "long - slope and thick - snow" for global capital. In GLP's view, China's supply - chain advantages, which are difficult for other countries in the global market to match, are largely due to the support of infrastructure. The current valuation point is attractive to long - term investors. Under the long - term trends of population, consumption patterns, digitalization, AI waves, and energy transformation, the market harbors huge opportunities.
A trillion - dollar - level golden track is rising, and global capital is turning its eyes to China. Recall what Ni Yili, the chairman of McKinsey China, said: The next China is still China.
This article is from the WeChat official account "Investment World" (ID: pedaily2012), author: Zhou Jiali, published by 36Kr with authorization.