Singapore-headquartered GLP expects logistics rents in China to rise 30-50% as market supply stabilises toward pre-Covid-19 levels. GLP China CEO Zhao told the South China Morning Post the firm will expand in logistics, data centres and renewable energy amid Beijing's push for domestic demand. The company operates extensively in China with significant property and energy assets.
Singapore-headquartered GLP anticipates significant growth in China's logistics sector. GLP China CEO Zhao told the South China Morning Post: “In logistics, as market supply stabilises, we expect rents to trend towards pre-Covid-19 levels, which reflect a 30 to 50 per cent upside from where we are today.” He added: “In data centres and new energy, we believe we are in the early stages of a generational growth cycle and just scratching the surface in terms of demand.” GLP develops and operates more than 420 logistics and business parks across 70 Chinese cities, managing 40 million square metres of properties in the world's second-largest economy. Its China operations own 2.7 gigawatts (GW) of renewable energy generating capacity, with 1.5GW already connected to power grids. One GW can supply about 750,000 households for a year. The company is reportedly planning an initial public offering in Hong Kong with a targeted valuation of about US$20 billion, according to a source familiar with the matter. Zhao declined to comment on the fundraising issue. These expectations align with Beijing's push to boost domestic consumption under the 15th five-year plan, focusing on logistics, business parks, data centres and renewable energies.
