The warehouse giant LPG is taking a chance in Brazil

In response to the demand for areas from e-commerce companies, GLP raised a fund of R$ 2.63 billion for investments in high-end assets within a radius of 30 kilometres from the city of São Paulo.

With firm demand from "e-commerce" companies, multi raises a fund of R$ 2.63 billion to invest in expansion.

By: SiiLA News

08/03/2021

GLP - the largest company in the warehouse segment with operations in Brazil - reinforces its stakes in the segment. In response to the demand for areas from e-commerce companies, GLP raised a fund of R$ 2.63 billion for investments in high-end assets within a radius of 30 kilometers from the city of São Paulo. Of the total, R$ 1.48 billion has already been paid out. The remaining will be made over the next four years.

The fundraising started two years ago and has just been completed. Eight plots of land had already been acquired and are in different phases of project development - there is a projection to acquire another area with funds from the fund. When the nine projects are ready, the fund's portfolio will be R$5.2 billion. For now, one project has been completed. Located in Cajamar (SP), it is fully leased to Mercado Livre.

Canada Pension Plan Investment (CPPIB) accounted for the majority of resource allocation in the GLP BDP II fund, with a 39.6% stake in the value. Abu Dhabi Investment Authority (Adia) held a 38.4% share, and GLP itself held 22%.

"There is demand for warehouses from e-commerce and for the replacement of inefficient old products", says GLP's president, Mauro Dias. The company's new inventory to be delivered this year in São Paulo and Rio de Janeiro totals 482,000 square meters and is part of 580,000 square meters under construction. "Out of the total scheduled deliveries for the fourth quarter, 70% is pre-leased", Dias adds. In the first semester, the company invested R$ 554 million, and in the accumulated total for 2020, R$ 713 million.

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