Blackstone has acquired a majority stake in the largest urban logistics park in China’s Greater Bay Area from R&F Group for US$1.1 billion.
Blackstone Real Estate’s opportunistic funds will acquire a 70% stake in the 1.2 million-square-meter logistics park located in Guangzhou, China. Blackstone has expanded its China logistics portfolio by approximately one-third.
“Logistics remains among our highest conviction global investment themes and we continue to see strong momentum driven by e-commerce trends. This transaction represents a continuation of Blackstone’s strategy to acquire high quality logistics located in tier-one distribution hubs with ongoing tenant demand. The investment also complements our existing Chinese logistics portfolio geographically, which will total 53 million square feet and give us a presence in 23 cities once the acquisition is complete.”
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“The Greater Bay Area is rapidly emerging as a financial, technology and transportation hub and one of China’s biggest logistics markets.”
“The Greater Bay Area is rapidly emerging as a financial, technology and transportation hub and one of China’s biggest logistics markets. Our scale, expertise in logistics, and the support of dedicated teams on the ground enable us to drive our plans for the park’s future growth including constructing additional cold storage facilities and institutional-quality warehouses to cater to rising demand,” said Cliff Chen, a Blackstone Real Estate Managing Director based in Shanghai.
The Greater Bay Area is a fast-growing metropolitan area comprising 11 cities including Shenzhen, Macau, and Hong Kong. The logistics park is located 15km from Guangzhou International Airport and houses blue-chip tenants across sectors such as third-party logistics (SF Express, YTO Express), e-commerce (Tmall, JD.com), pharmaceuticals (Sinopharm, CR Pharma), and telecommunications (China Mobile, China Telecom).