Logistics Property Funds Launched by Keppel Capital To Put Money Into Logistics Property in China
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Keppel Capital has established a China logistics land finance to invest in creating high quality logistics resources in key hubs in China.
China’s logistics industry has been undergoing a rapid growth in the past few decades, particularly with the speed of internet marketplaces on account of this Covid-19 pandemic.
The fund was started along with a international institutional investor, whose first title was undisclosed at a Feb 2 announcement.
The fund intends to invest in the growth of assets in China that would satisfy the strong need for high-specification logistics centers.
That can be Keppel Capital’s inaugural China-focused logistics land finance, also has a preliminary total equity commitment of roughly RMB1.40 billion ($288.3 million), having an choice to upsize with a similar amount at the end of 2021.
Keppel Capital’s wholly-owned subsidiary Keppel Capital China will act as the fund’s investment director.
The initiation of the fund is based on Keppel’s Vision 2030, which sees Keppel with its asset management arm to capture opportunities in supplying alternatives for sustainable urbanisation.
The finance will tap in the Keppel Group’s expertise, expertise and network, in addition to the experience of a major Chinese logistics developer and operator to take on the operations and development of Grade-A logistics centers across China’s crucial logistics hubs.
A pipeline of possible resources was identified for the cooperation between the finance and also the Chinese logistics property developer.
“Driven by increasing domestic consumption in addition to e-commerce, China’s requirement for quality logistics centers is growing quickly. Throughout the finance and our cooperation with our regional logistics land partner, we anticipate providing modern logistics centers for key cities in the Chinese marketplace, while also producing appealing risk-adjusted returns for our investors,” says Christina Tan, CEO of Keppel Capital.