SHANGHAI—Global Logistics Properties Ltd. has established what is believed to be the largest China-focused logistics infrastructure fund to date, CLF II. At US$7 billion, it's more than twice the size of its US$3-billion predecessor, and was significantly oversubscribed.

Seven institutional investors, among them some of the world's largest national pension and sovereign wealth funds, are investing alongside GLP to develop modern logistics facilities in China. GLP, which is managing the new fund and holds a 56% stake in it, is seeking to capitalize on a shortage of warehouse space amid increasing consumer demand.

GLP CEO Ming Z. Mei says the successful closing on CLF II “reflects the confidence of institutional investors in GLP's proven track record as an operator, developer and fund manager. China remains our primary market for development. The fund management platform is an important source of capital for GLP and we remain focused on leveraging it to scale our business effectively while driving higher risk-adjusted returns.”

The fund expects to start acquiring land later this year and start construction next April. GLP says CLF II will enable it to develop about 140 million square feet of logistics space over the next four years, more than doubling the size of its portfolio in China.

M3 Capital Partners (HK) Ltd. served as exclusive financial advisor to GLP in connection with the formation of the fund. A Morrison & Foerster team including Ken Muller, Eric Piesner, Marcia Ellis, Michelle Jewett and Chris Delson provided legal counsel to GLP. The law firm served in the same capacity on GLP's $8.1-billion partnership with GIC, Singapore's sovereign fund, to acquire IndCor, the Blackstone Group's US logistics platform.