Asian asset manager Keppel Capital, together with a global institutional investor, has launched a China logistics property fund to invest in logistics assets in China.
This is Keppel Capital’s inaugural China-focused logistics property fund, and has an initial total equity commitment of around RMB 1,400 million, with an option to upsize by a similar amount by the end of 2021.
The fund plans to invest in the development of assets in China which would meet the strong demand for high-specification logistics facilities which are well-connected to established supporting infrastructure, such as major transportation hubs.
The fund will develop and operate Grade-A logistics facilities across China’s key logistics hubs such as those in Greater Beijing, Greater Shanghai and the Greater Bay Area with a Chinese logistics developer and operator.
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“Despite the challenges brought about by the COVID-19 pandemic, Keppel Capital has continued to work with Keppel’s eco-system of companies and other industry partners to create and capture compelling investment opportunities across a range of asset classes. In 2020, Keppel Capital raised close to $4.5 billion, including commitments from large global institutional investors, reflecting the strong demand for real assets with cash flow that can serve as long-term inflationary hedges,” said Ms Christina Tan, CEO of Keppel Capital.
“Driven by rising domestic consumption as well as e-commerce, China’s demand for quality logistics facilities is expanding rapidly. Through the fund and our collaboration with our local logistics property partner, we look forward to delivering modern logistics facilities for key cities in the Chinese market, while also generating attractive risk-adjusted returns for our investors,” she added.