APG Asset Management buys 20% e-Shang, sets up China JV

        Source:24 Ore Radiocor-Newswire International Edition Date:2014-06-02 11:47:42

        To commit up to 650 mln usd for transaction (Il Sole 24 Ore Radiocor) - Amsterdam , 29 May - Dutch pension fund asset manager APG Asset Management said it has agreed to commit up to 650 million dollars to acquire about 20% of Chinese warehouse developer and operator e-Shang and to create a joint venture with the firm to develop and own institutional-grade modern logistics real estate assets across China.

        According to APG, the transaction represents one of the largest commitments to the Chinese logistics real estate sector.

        E-Shang was founded in 2011 by U.S. private equity firm Warburg Pincus and two local entrepreneurs and currently owns over 1.5 million square meters of completed and ongoing projects in China. The company eventually plans to carry out an initial public offering.

        It 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.

        "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. 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."

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