The Carlyle Group and The Townsend Group have partnered with Shanghai Yupei Group to invest in 17 warehouses in China, representing a combined equity commitment of $400 million.
Carlyle, an alternative asset manager, and Townsend, an investment management company, will commit about $200 million to acquire equity interests in five warehouses owned by Shanghai Yupei Group, a Chinese logistics warehouse developer, and will build 12 new warehouses in the next two years. Shanghai Yupei Group will also invest about $200 million.
The 17 warehouses will be located in logistics hubs across China, including Shanghai, Beijing and Guangzhou, as well as Shenyang, Tianjin, Chongqing, Zhengzhou and Hefei. Upon completion of the investment plan, the companies plan to own and operate a nationwide a nationwide logistics warehouse network of more than 1.8 million square meters of gross floor area.
“Modern logistics is a nascent but fast growing industry in China, supported by strong growth in domestic consumption, exponential expansion of e-commerce and favorable government policies,” said Jason Lee, managing director and head of Carlyle Asia Real Estate, a subsidiary of Carlyle, in a written statement.
Shifa Li, chairman of Shanghai Yupei Group added: “We have a strong pipeline of development projects in major logistics hubs in China. The capital injection will allow us to further speed up land acquisitions and construction, and to quickly expand our geographical coverage to better serve our tenants.”