A Singapore sovereign wealth fund is betting on a Chinese logistics facilities company following a platform investment from a major U.S. private equity investor. Overseas institutional money views modern logistics in China as a viable investment theme due to growth in mainland China e-commerce and middle class income. Temasek Holdings, through SeaTown Holdings International, and RRJ Capital Ltd., managed by Charles Ong and Richard Ong, are investing US$ 250 million in Shanghai Yupei Group Co. Founded in 2000, Shanghai-based Yupei is one of the biggest privately owned logistics warehouse developers in China.
The deal follows a US$ 200 million investment from The Townsend Group and The Carlyle Group back in August. Townsend and Carlyle, through its vehicle Carlyle Asia Real Estate, committed capital to purchase equity interests in 5 warehouses owned by Yupei and 12 new warehouses in development. The planned warehouses are being built in cities such as Shanghai, Beijing, Guangzhou, Shenyang, Tianjin and Hefei.
“China is an attractive logistics market, with strong fundamental demand and a limited supply of modern logistics facilities. As a leading player in the industry, we believe Yupei is well-positioned to capitalize on this rapidly growing market,” said Jimmy Phoon, CEO of SeaTown Holdings International in a press release.
SeaTown Holdings International was created in 2009 by Temasek Holdings. Charles Ong was the former CEO of SeaTown Holdings.