PGIM Real Estate has completed two transactions for logistics properties located across Nanjing, Shanghai, and Langfang in China, together with its partner New Ease China, amounting to US$323 million. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Executed on behalf of the firm’s Asia Pacific core-plus investment strategy, the first transaction is the acquisition of a warehouse complex comprising 10 high-quality ambient single-story warehouses in Nanjing which was owned and developed by New Ease China, who will continue to co-own and undertake management of the asset. Currently 97% occupied, the complex was built to high specifications that meet the needs of e-commerce firms, third-party logistics providers (3PLs) and cold chain operators.
The second transaction, executed on behalf of PGIM Real Estate’s Asia Pacific value-add strategy, is to acquire and develop high-quality ambient warehouses in Shanghai and Langfang in partnership with New Ease China. These are key regional high-growth distribution hubs supporting first-tier cities, and the warehouses will be built to modern specifications catering to the requirements of e-commerce firms, 3PLs and end-users.
“We’re excited to partner with New Ease China—an experienced, best-in-class real estate operator—on the acquisition and development of these modern and high-spec logistics assets,” said Benett Theseira, PGIM Real Estate’s head of Asia Pacific. “The properties are a significant boost to our regional portfolio due to their optimal locations and long lease tenures. We expect continued strong interest and liquidity for logistics assets in China, given the structural shift towards e-commerce. This shift will continue to fuel demand for quality assets in the right locations, supporting long-term growth across our portfolio.”
Mr. Sun Dongping, the Founder and Chairman of New Ease China, added: “We are pleased to launch our partnership with PGIM Real Estate on these assets, and it demonstrates our capability and track record of developing best-in-class, strategically located industrial and logistics facilities in prime locations across China.”