Carlyle Group, the US private equity firm, and Townsend, a US real estate investor, said on Thursday they will invest $200 million in 17 warehouses in China.
Five of the properties already exist and are owned by Shanghai Yupei Group, a local developer, which will also invest US$200 million. The remaining 12 will be built over 2 years.
The 17 warehouses will be located in Shanghai, Beijing, and Guangzhou, and second-tier cities such as Shenyang, Tianjin, Chongqing, Zhengzhou and Hefei. The partners plan to own more than 1.8 million square meters of gross floor area across China.
“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, head of Carlyle’s Asian real estate arm, in a statement.
Carlyle’s share of the equity will come from its China real estate fund, Carlyle Asia Real Estate. The fund has invested $2.2 billion of equity in Asia. In China it has made 15 investments.