APG to inject up to USD650m into warehousing developer e-Shang

        Source:M&A Navigator Date:2014-06-02 11:47:04

        29 May 2014 - Dutch pension fund asset manager APG Asset Management NV said today it would invest as much as USD650m (EUR477.7m) to buy some 20% in Chinese warehousing developer and operator e-Shang and set up a strategic joint venture for logistics real estate in China.

        The planned investment is in line with the fund's strategy to tap the demand for warehouses in China, which is driven by the growth of e-commerce and third-party logistics, APG said.

        The Chinese firm was set up in 2011 by US private equity firm Warburg Pincus LLC and two Chinese entrepreneurs, Sun Dongping and Jeffrey Shen. Apart from developing warehouses, the business also offers logistics services.

        Sun Dongping commented that the transaction was an important milestone that validated his company's achievements. Jeffrey Shen added that the partnership with APG would allow his firm to study more opportunities and bolster its warehousing and logistics servicing platform.

        For his part, Warburg Pincus executive director Jeffrey Perlman said that APG’s investment together with a recent USD120m financing from Goldman Sachs Group Inc (NYSE:GS) would enable e-Shang to triple the size of its portfolio in the next several years with the plan of an eventual IPO.

        Status: Agreed

        Type group:

        Type: JV

        Type: LBO

        Type: Stakebuilding

        Buyer: APG Asset Management NV

        Comment: Deal size refers to maximum investment in e-Shang.

        Country: China

        Deal size (USD): 650m

        Sector: Construction/Real Estate

        Sector: Road Transport/Freight Transport

        Target: e-Shang

        TypeInfo: Media Reports

        Keywords for the information:

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