JP Morgan Global Alternatives has teamed up with Shanghai-based logistics real estate platform, New Ease, for a new US$600m Chinese logistics joint venture.
The JV will invest in modern logistics facilities throughout China, starting with a US$600m portfolio of stabilised assets located in the gateway cities of Shanghai, Nanjing, and Suzhou.
The new assets have been developed by New Ease, which has more than 4m sq.m. of logistics assets in operation or under development across key logistics markets in China.
“The joint venture is well-positioned to capitalize on China’s supply shortage of high quality industrial property given current and future tenant demand levels,” said David Chen, JP Morgan Global Alternatives’ CIO for real estate Asia-Pacific.
New Ease was established by Sun Dongping and the management team in 2018, investing, developing and managing institutional-grade logistics properties across China.
“We are very excited to partner with J.P. Morgan Asset Management, which has deep experience in the global real estate investment field,” said New Ease founder and chairman Sun Dongping.
“That despite the interruptions brought by COVID-19 in China, tenant demand for quality logistic facilities remains robust – and perhaps has even strengthened – as consumers increasing shift to e-commerce.”
Institutional investors and fund managers have zeroed in on China’s logistics story in recent months.
Last week, the property arm of Baring Private Equity Asia, BPEA Real Estate, committed US$480m to Chinese logistics property platform, Forest Logistics.
In April, Australian-based logistics developer and investor Logos Property completed the first close of a new US$800m logistics development venture in China with Canadian investor Ivanhoé Cambridge and Dutch investment manager Bouwinvest.
Last month, Logos and real estate investment manager CBRE Global Investors raised RMB 5.5bn (US$786m) in the final closing of their CBRE LOGOS China Logistics Club fund, while warehouse investor and developer GLP raised RMB 15bn (US$2.1bn) in the final closing of its GLP China Income Fund I to support its capital recycling strategy in China.
Chicago-headquartered LaSalle Investment Management also raised US$681m for its first Chinese logistics-focused fund, LaSalle China Logistics Venture, in April.
JP Morgan Global Alternatives is the alternative investment arm of JP Morgan Asset Management, and has $145bn in assets under management.