Dutch Pension Fund to Invest in Chinese Warehouse Developer

        Source:Financial Services Monitor Worldwide Date:2014-06-02 11:46:17

        SHANGHAI-Dutch pension fund asset manager APG Asset Management NV is planning to purchase a roughly 20% stake in a Chinese warehouse developer for up to $650 million to tap growing domestic consumption and demand for logistics space in China.

        The developer, closely held Shanghai e-Shang Warehousing Services Co., will also set up a joint venture with APG to build modern logistics real-estate assets across China.

        Shanghai e-Shang, which currently owns more than 1.5 million square meters of completed and ongoing projects in Shanghai, Beijing, Guangzhou and other cities, is majority owned by private-equity firm Warburg Pincus.

        "We have watched this sector closely over the last few years and this investment is consistent with our strategy to gain the right exposure to the Chinese logistics real-estate market, " said Sachin Doshi, head of non-listed real estate for Asia Pacific at APG, in a statement. Mr. Doshi added that the growth of domestic consumption and a shortage of modern logistics facilities are compelling trends.

        China's logistics real estate sector has gained increasing investment interest from domestic and international institutions due to the needs of e-commerce companies to store and transport the products they sell to customers' doorsteps. Last month , the property arm of Chinese insurer (Group) Co. purchased a 90,000 square meter logistics park in the city of Chengdu from LaSalle Investment Management. Also in April, private-equity firm RRJ Capital and a unit of Singapore state investor Temasek Holdings Pte. Ltd. agreed to Shanghai Yupei Group.

        In February, a group of Chinese investors, including Bank of China Group Investment Ltd. and private-equity firm Hopu Funds in Singapore-listed including in its mainland unit.

        TypeInfo: Media Reports

        Keywords for the information:

        ©Shanghai e-Shang Warehousing Services Co.,Ltd.  沪ICP备12024686号