Editor’s Note: The final paragraph of this story has been updated on June 6 to reflect that GLP established its fund management business in 2011 and that the total equity raised by GLP Capital Partners in 2022 stood at $12.3 billion.

GLP China, the China arm of Singapore-based real estate investment group GLP, announced on Monday that its real estate investment trust (REIT) has raised about 1.853 billion yuan ($260.9 million) in a rights offering to bankroll expansion plans.

China-focused CICC GLP Warehouse Logistics Close-End Infrastructure Fund (CICC GLP REIT) issued as many as 438 million shares at about 4.23 yuan ($0.6) apiece, according to a regulatory filing. It will use the proceeds to acquire three logistics facilities across Shandong Province, Guangdong Province, and the municipality of Chongqing in eastern, southern, and southwestern China, respectively.

Upon the successful completion of the acquisitions, CICC GLP REIT’s portfolio will comprise 10 modern logistics assets with 1.16 million square metres (almost 12.5 million square feet) of gross floor area. These assets are in core logistics hub areas across China, including the Jingjinji Metropolitan Region, the Yangtze River Delta, the Bohai Bay Economic Rim, the Greater Bay Area, and the Chengdu-Chongqing Economic Circle.

As a closed-end mutual fund, CICC GLP REIT is managed by CICC Fund Management, a wholly-owned subsidiary of the Chinese partially state-owned financial services group China International Capital Corporation Limited (CICC).

CICC GLP REIT, also known as GLP C-REIT, is among China’s first batch of nine approved and listed REITs including seven infrastructure companies and two logistics companies. Besides CICC GLP REIT, the other logistics-focused C-REIT (China-REIT) is the Chinese state-owned Hongtu Innovation Yantian Port Warehousing and Logistics.

The rights offering comes around two years after China’s official launch of the public REIT market to create another source of funding for developers in the infrastructure sector. The first batch of nine public C-REITs, including CICC GLP REIT, was listed on China’s domestic stock exchanges in June 2021, raising 34 billion yuan ($4.8 billion) in total with five initial public offerings (IPOs) in Shanghai and another four in Shenzhen.

In its IPO on the Shanghai stock exchange, CICC GLP REIT raised 5.84 billion yuan ($821.3 million) by issuing 1.5 billion shares at 3.89 yuan ($0.55) per share.

GLP China operates as an investment manager and business builder in logistics, data infrastructure, renewable energy and related technologies. It is the investor, developer and operator of approximately 400 infrastructure facilities in logistics and supply chain, manufacturing and research, data infrastructure and renewable energy, across 70 cities in China as of the first quarter of 2023.

The firm has $72 billion in assets under management (AUM) across several real estate and private equity (PE) funds and CICC GLP REIT.

GLP Capital Partners, the exclusive investment and asset management arm of GLP, raised $12.3 billion from investors last year to bring its total AUM to $125 billion. The equity raised, which translates into a 24% compound annual growth rate (CAGR) since the establishment of GLP’s fund management business in 2011, comprises $10.3 billion from real estate strategies and $2 billion from PE strategies.