Sino-Ocean to launch a new fund targeting mainland logistics, warehousing
- China has a shortage of high-quality warehousing facilities, especially in areas surrounding first tier cities, according to Sino-Ocean
- Mainland China has just 12 to 13 per cent of the warehousing facilities available in the US
Sino-Ocean Capital, the investment arm of mainland developer Sino-Ocean Group, is planning a new fund to tap into growing demand for warehousing properties amid the continuing rise of e-commerce.
The company plans to launch a 3 billion to 5 billion yuan (US$436.1 million to US$726.9 million) fund to acquire logistics properties in the second-half, said Lin Chuan, managing director of Sino-Ocean Capital, who oversees its private equity business.
“Real estate lies deep in Sino-Ocean’s DNA. One edge we have that normal private equity investors don’t is in acquiring sites and space that can meet the warehousing demand of logistics firms,” Lin said.
He added Sino-Ocean has a target of investing 48 billion yuan into logistics property over the next five years.
Mainland China’s fast-growing e-commerce business has generated strong demand for logistic space near major urban centres, drawing a surge of investment from real estate funds and e-commerce companies in recent years.
Sino-Oceanhas invested in nine logistic firms including cold-chain, inter-and intracity warehousing and delivery, and is now seeking to build up a foothold in warehousing, where assets are in short supply in the mainland. The company recently launched a 1.6 billion yuan logistics firm buyout fund, seeking to create a synergy with its logistics property investment.