News

        APG COMMITS UP TO $650 MILLION TO E-SHANG TO EXPAND ITS LEADING LOGISTICS REAL ESTATE FOOTPRINT ACROSS CHINA

        Date:2014-06-02 11:53:12

        Shanghai, China, May 29, 2014 --Dutch pension fund asset manager APG Asset Management N.V. (“APG”) and leading Chinese warehousing developer and operator e-Shang today announced that APG will commit up to $650 millionfor an approximately 20% stake in the company and the creation of a strategic joint venture with the company, to develop and own institutional-grade, modern logistics real estate assets across China.   

         

        Since its founding in 2011 by leading global private equity firm Warburg Pincus and two local entrepreneurs, e-Shang has grown rapidly and currently owns over 1.5 million square meters of completed and ongoing projects in China.  The company focuses on developing institutional quality warehouses as well as providing logistics services from prime locations across greater Shanghai, Beijing, Guangzhou as well as a number of second-tier cities.

         

        Sachin Doshi, Head of Non-Listed Real Estate for Asia-Pacific at APG, said, “We are delighted to partner with e-Shang and Warburg Pincus on this exciting venture. 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. With the continued growth of third party logistics, e-commerce and the evolution of domestic consumption patterns combined with a severe shortage in the supply of modern logistics facilities, we strongly believe that the logistics real estate sector in China will be a long term beneficiary of these trends.”

         

        Sun Dongping, Co-founder and Chairman of e-Shang, commented, “It is truly an honor to partner with APG, a highly respected global institutional investor.  This transaction marks a significant milestone for the company and is a reflection of e-Shang’s achievements so far, our strong management team and the outstanding cooperation to date with Warburg Pincus.”

         

        In December 2013, e-Shang successfully secured a $120 million pre-IPO loan from Goldman Sachs and to date, e-Shang has raised over $1 billion of equity capital.  When combined with project-level financing, the company has several billion dollars of overall funding capacity to help it capitalize on the significant growth opportunities in the logistics sector. 

         

        Jeffrey Shen, Co-founder and Chief Executive Officer of e-Shang, said, “We are excited to have APG as our new shareholder and joint venture partner to explore more opportunities and further expand our warehousing and logistics servicing platform in China. As the demand for modern, high quality warehouse and logistics services continues to grow, we will seek to further solidify our leading market position and deliver quality service and growth for our stakeholders.”

         

        Jeffrey Perlman, Executive Director of Warburg Pincus, commented, “The significant commitment by APG is yet another meaningful endorsement of e-Shang’s business model, strong management capabilities and outsized growth potential. With APG’s investment and the recent financing from Goldman Sachs, e-Shang is well positioned to more than triple the size of its portfolio over the next several years with the plan of an eventual IPO.  We look forward to working closely with APG and continuing to support e-Shang as it enters its next phase of growth.”

         

         

         

         

         

         

        About APG Asset Management N.V.

        APG Asset Management N.V. is a Dutch pension fund asset manager in the Netherlands. For its pension fund clients and their 4.5 million active and retired participants from the public and private sectors representing over 30% of all collective pension schemes in the Netherlands, APG Asset Management N.V. manages pension assets of more than €359 billion as at the end of April 2014.

         

        About e-Shang                                                                                                                                                    

        e-Shang, headquartered in Shanghai, is a leading developer and total solutions provider of warehousing infrastructure and facility development catering to clients focused on domestic consumption.  It also provides logistics and office facility development, operation and management services for enterprise clients.

         

        About Warburg Pincus

        Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $37 billion in assets under management. Founded in 1966, Warburg Pincus has raised 13 private equity funds, which have invested more than $48 billion in over 700 companies in more than 35 countries. Warburg Pincus has been active in China since 1994. It has a proven track record as an investor in the consumer and retail sector globally and in Asia, building successful businesses and leading brands such as China Auto Rental, Kidswant, Intime Department Store, Red Star Macalline, Franshion Properties and 7 Days Inn.

         

        Media Contacts

         

        APG

        Harmen Geers

        +31 206049136

        harmen.geers@apg.nl

         

        e-Shang

        Anyi Wang

        +86 21 2409 9566 ext. 606

        +852 3101-7157

        anyiwang@e-Shang.com.cn

         

        Warburg Pincus

        Mingxia Li

        +86 10 5923 2569

        Mingxia.li@warburgpincus.com

        TypeInfo: e-Shang News

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