A European logistics fund launched by Singapore-based global logistics investor GLP, QuadReal Property Group and Canada Pension Plan Investment Board in November 2018 will be "upsized" to €4 billion ($4.8 billion), reflecting unexpectedly rapid progress in putting the initial €2 billion in equity to work.
QuadReal Property Group, a Vancouver-based global real estate firm with C$61.2 billion ($50.3 billion) in assets under management and CPPIB, a Toronto-based pension fund with C$497.2 billion in assets will shoulder 85% of the additional €2 billion tranche to GLP's 15%, up from a 50-50 split for the initial €2 billion. CPPIB will contribute the biggest chunk of the coming €2 billion, with €900 million, or 45% of the total, followed by QuadReal with €800 million and GLP with €300 billion.
The expansion will allow GLP Continental Europe Development Partners 1 to move beyond its initial focus on countries such as Germany, France, Italy, Spain and the Netherlands to become a "pan-European development vehicle" with strategic investments in the U.K. as well as Central and Eastern European markets, GLP said in a news release.
"Our investment pipeline is considerably ahead of schedule and we are seeing strong demand for our developments, reflecting attractive fundamentals for logistics developments across all major hubs in Europe," Ralf Wessel, GLP's Singapore-based managing director, fund management, said in the release."
GLP contributed €1 billion of the fund's initial €2 billion in equity, with QuadReal Property adding €550 million and CPPIB the remaining €450 million.