Firm advises GLP on establishing the largest China-focused logistics infrastructure fund; GLP’s fund management platform increases 36% to US$27.1 billion
Singapore (July 21, 2015) – Morrison & Foerster is advising Global Logistic Properties Limited (GLP), the leading provider of modern logistics facilities in China, Japan, and Brazil, on the establishment of CLF II, US$7 billion infrastructure fund, the largest logistics infrastructure fund based in China.
As detailed in the press release issued by GLP, seven leading global institutions, including some of the world's largest national pension and sovereign wealth funds, are investing alongside GLP to develop modern logistics facilities in China to develop 13 million square meters over four years. China is GLP's primary market for development with development starts growing at 30% per annum. CLF II is more than double the size of CLF I (US$3 billion) given the size of the market opportunity and strong demand from investors. The offering was significantly oversubscribed and provides long-term capital that enables GLP to strengthen its network effect, better serve customers, and de-risk its development pipeline.
Morrison & Foerster is advising GLP on the transaction, with a fund formation deal team led by San Francisco fund formation partner Ken Muller, Singapore corporate partner Eric Piesner, Hong Kong corporate partner Marcia Ellis, New York tax partner Michelle Jewett, and New York real estate partner Chris Delson.
Morrison & Foerster has advised GLP on many of its market leading transactions, including most recently on its co-investment with an affiliate of Singapore sovereign wealth fund GIC Pte Ltd in the acquisition from the Blackstone Group of one of the largest real estate portfolios in the United States, which has been injected into GLP’s fund management platform. The transaction, valued at US$8.1 billion, marked GLP’s first foray into the U.S. market. The firm also advised GLP on the expansion of its US$2.2 billion joint venture in Japan with the Canada Pension Plan Investment Board, as well as on the formation of a US$1.1 billion fund in Brazil, GLP Brazil Income Partners II (“GLP BIP II”) and the acquisition of the portfolio of assets being injected into GLP BIP II. The firm also represented an affiliate of GLP in the formation of its US$3 billion CLF I fund in November 2013, the world’s largest China-focused logistics infrastructure fund at that time; represented GLP in a US$1.6 billion joint venture for the acquisition of 15 logistics properties in Japan; and represented GLP in a US$1.4 billion joint venture for the acquisition of 40 logistics properties in Brazil.
Morrison & Foerster opened its Singapore office, the firm’s fifth in Asia, in early 2013 to support clients’ deepening commitments to South and Southeast Asia. Since that opening, the firm has worked on a number of major cross-border transactions originating in Singapore. In addition, Morrison & Foerster has the leading real estate practice in Asia, with over 25 full-time dedicated real estate attorneys resident across the firm’s five Asian offices.