GLP secures up to US$1.5 billion investment from Adia unit

Global logistics builder and investor GLP has secured up to US$1.5 billion of investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (Adia) to back its next growth phase, the two companies said on Thursday (Aug 28).

The deal includes an initial capital deployment of US$500 million. The funds will be used to bolster Singapore-headquartered GLP’s presence in logistics, digital infrastructure, and renewable energy, the companies said in a joint statement.

The rest of the capital will be invested in the coming months, said a person with knowledge of the matter, who declined to be named as the information was not public.

The investment comes amid rising demand for logistics and digital infrastructure.

Investments into data centres have surged in particular, driven by high growth potential and strong demand for artificial intelligence services.

GLP develops and operates logistics real estate, data centres, renewable energy, and related technologies, with operations across Brazil, China, Europe, India, Japan, the US, and Vietnam. The group manages around US$80 billion of assets through its asset management unit, GLP Capital Partners.

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Adia has been an investor in GLP’s funds, but it is the first time the largest sovereign wealth fund of the UAE will become a shareholder in the group.

GLP said earlier this week it has secured 2.5 billion yuan (S$450 million) from Zhejiang government-backed investors to expand its China data centre operations.

In May, GLP reported a 43 per cent surge in annual data centre revenue to US$193 million.

Last November, Reuters reported that GLP was aiming for a Hong Kong listing in 2025, more than eight years after it was taken private.

The company is still aiming for a Hong Kong listing but it would not happen this year, said the person and a second source familiar with GLP’s plans.

GLP declined to comment on its listing plan.

In 2017, a Chinese private equity consortium including Hopu Investment Management and Hillhouse Investment, backed by GLP’s CEO Ming Mei, took the then Singapore-listed firm private for S$16 billion.

In October, GLP sold the international business of GLP Capital Partners to Ares Management for US$3.7 billion, paid with about US$1.8 billion in cash and the rest in shares. REUTERS