GLP Group Projects 30–50% Logistics Rent Surge in China, Reports $20B Hong Kong IPO Plans

Singapore-headquartered GLP Group, a global operator and investor in logistics, digital infrastructure, renewable energy, and finance, is projecting a 30 to 50 percent rise in Chinese logistics rental rates, citing stabilizing market supply and strengthening domestic consumption. The company is also reportedly planning an initial public offering in Hong Kong with a targeted valuation of approximately $20 billion, according to a source familiar with the matter.

Industrial Real Estate Outlook: Rents Trending Toward Pre-COVID Levels

Angela Zhao, CEO of GLP China, said the company expects logistics rental rates to recover toward pre-pandemic benchmarks. "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," Zhao told the South China Morning Post.

GLP is the developer and operator of more than 420 logistics and business parks across 70 Chinese cities, with 40 million square meters of properties under management in the country. Its client base in China includes more than 3,000 corporate tenants, among them U.S. retail giant Walmart and Chinese e-commerce company Alibaba Group Holding.

Zhao, who was promoted to China CEO in January after previously serving as GLP's China head of logistics and industrial real estate, said she would focus on strengthening integration and synergies across the company's "new economy" platforms as new opportunities emerge.

Data Centers and New Energy Positioned for Long-Term Growth

Beyond its logistics park operations, GLP China operates 20 digital infrastructure campuses that house data centers for both global and domestic companies. Zhao described the data center and new energy segments as being in the early stages of a long-term expansion cycle.

"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," Zhao said.

GLP's China operations currently hold 2.7 gigawatts of renewable energy generating capacity, with 1.5 gigawatts already connected to power grids. The company has identified synergies between its property management operations and renewable energy assets, particularly given the energy intensity of warehouses and data centers.

"Warehouses and data centres are intensive energy users," Zhao said. "By integrating renewable energy with our real asset operations, GLP can unlock synergies between property management and renewable energy to improve operating efficiency and profitability."

China's Five-Year Plan and Domestic Consumption

Zhao cited China's 15th five-year development plan, covering 2026 to 2030, as a key policy tailwind for GLP's positioning as a thematic investor in new economy industries. Beijing has increased efforts to stimulate domestic demand amid a prolonged property sector downturn, announcing a special fund of 100 billion yuan ($14.5 billion) and ultra-long special treasury bonds worth 250 billion yuan to promote retail spending, including subsidies for consumer product purchases.

"As the five-year plan places domestic consumption in a very important position, boosting domestic consumption will definitely have a positive driving effect on the demand and growth of our logistics segment," Zhao said. "The vast majority of our logistics businesses serve the domestic market."

China's clean energy share reached 30.4 percent of total energy use in the most recent reporting period, up from 28.6 percent the prior year, according to the National Bureau of Statistics, while coal's share declined to 51.4 percent from 53.2 percent. GLP said its renewable energy generating capacity would grow substantially in coming years, driven by new energy investments.

Hong Kong IPO Plans

GLP Group is reportedly considering a Hong Kong IPO at a valuation of approximately $20 billion, according to a source familiar with the matter. Zhao declined to comment on the fundraising plans when asked by the South China Morning Post. No timeline or additional terms were disclosed.