Warburg Pincus-Backed Warehouse Developer Gets $120 Mln Loan

        Writer:Chao DengSource: Dow Jones Date:2013-12-12 15:48:18

        SHANGHAI--A Shanghai-based warehouse developer co-founded by Warburg Pincus two years ago is getting a $120 million loan from Goldman Sachs, the latest foreign investment into China's fast-growing logistics sector.


        The loan would help warehousing developer and operator e-Shang capitalize on "significant growth opportunities in the logistics sector," according to a news release from the company Thursday. The firm plans to go public "in the next few years," the statement said, without giving details.


        Demand for "quality logistics facilities' is "robust," due to "increasing domestic consumption and a shortage of warehousing supply," said Joseph Gagnon, managing director of Warburg Pincus, in the statement.


        Investors from property developers to private-equity firms have been eager to be part of China's e-commerce and consumption boom by investing in logistics-related businesses, including warehousing. China's State Council, or cabinet, said in February that the country needed to raise the efficiency of logistics and transport, and highlighted the need to streamline such operations while encouraging the use of more environment-friendly vehicles as well as "green" warehouses and business parks.


        Warburg is a "significant shareholder" in e-Shang, having invested a total of $200 million, according to a Warburg spokeswoman. Goldman wasn't immediately reachable for comment.


        E-Shang currently has one million square meters of completed and ongoing projects in Shanghai, Beijing, Guangzhou as well as second-tier cities in China.


        Write to Chao Deng at

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