Bouwinvest invests US$100 million in Chinese logistics developments

Bouwinvest has committed $100 million to a joint venture investing in logistics developments in China for its Asia-Pacific Mandate. Through a partnership with developer LOGOS and investor Ivanhoé Cambridge, the joint venture will develop modern, high-quality logistics and industrial facilities in key distribution hubs to service the markets of greater Beijing, Shanghai and Guangzhou.

Each of these four regions has attractive macro-economic fundamentals as well as strong supply and demand dynamics for logistics real estate. Within these regions the focus is on locations in close vicinity to critical infrastructure and large growing population bases.

The Asia-Pacific Mandate previously partnered with LOGOs in a recent co-investment in a logistics site in Singapore.

Tjarko Edzes, who heads Bouwinvest Asia-Pacific Investments, said: “We believe the long-term fundamentals for the Chinese logistics sector are compelling. Current market conditions, as a result of COVID-19, will allow the venture to secure attractive opportunities for logistics development. The Chinese logistics real estate market is underpinned by strong urbanisation trends, increasing consumer disposable incomes and robust growth in e-commerce, which provides an attractive alternative to traditional retail.”