News

        Investors Target Logistics Property in China

        Source:TheWallStreetJournal Date:2013-06-04 17:32:56

         

        The logistics sector, a segment of industrial real estate, is also seen as another way to tap into China's growing consumer class. The unexpected popularity of online shopping in China is seen as continuing to drive demand for storage space from online retailers, analysts said.
         
        Warburg Pincus has also made investments in China's logistics sector, which the private-equity company sees as a way to benefit from rising domestic consumption. In 2011 it co-founded e-Shang, a warehousing developer and operator based in Shanghai. e-Shang has grown from a portfolio of warehouses of 50,000 square meters in 2011 to its current 1 million square meters of completed and developing projects, buoyed by the rapid growth of e-commerce in the country.
         
         
         
        "A major e-commerce client back in 2009 signed a space for 3,000 square meters in one warehouse. Today, we have developed a build-to-suit facility for that same client of approximately 135,000 square meters," said Jeffrey Shen, chief executive officer at e-Shang, whose clients include Amazon.com Inc. and e-commerce company Yihaodian.
         
         
         
        "Local governments are also keener to support e-commerce retailers, which contributes to higher employment and meaningful tax revenue for the city," said Mr. Shen, adding that the company plans to expand further in first-tier cities such as Beijing, Shanghai and Guangzhou, where it currently has a presence, and into second-tier cities such as Chongqing and Chengdu.
         

        TypeInfo: Media Reports

        Keywords for the information:

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