China-based logistics real estate platform New Ease has formed a China logistics partnership, New Ease Gold Development L.P., with global real estate manager QuadReal Property Group.
With a total equity commitment of up to US$1 billion, the partnership will invest in and develop a best-in-class logistics portfolio in China, with the focus on tier 1, tier 1.5 cities and select tier 2 cities where manufacturing and consumption activities are most dynamic.
The partnership will be seeded initially with a prime land site located in Suzhou, on which a modern three-story ramp-up facility with a gross floor area of approximately 140,000 sqm will be developed. The partnership expects the facility to serve as a regional distribution center for new economy enterprises, supporting the robust logistics demand in the Greater Shanghai Area.
Beyond the initial project, New Ease, as the investment and asset manager, has identified a portfolio of pipeline assets worth of over $1bn that will be acquired by the partnership. Once fully deployed, it will bring the total assets under management of New Ease to over US$7 billion.
”Our partnership with New Ease represents the second investment by QuadReal into the China logistics sector. Logistics remains a key conviction of QuadReal not just in Asia but also across Europe, the United States, and Canada, where we have partnered with best-in-class operators or develop and manage the assets ourselves,” said Peter Kim, QuadReal’s Managing Director, Asia.
“We are excited to partner with QuadReal, a leading global investor with deep industry insight. New Ease is committed to providing the essential infrastructure for the new economy customers and we look forward to creating sustainable long-term values for all our stakeholders. The establishment of the partnership with QuadReal is a recognition of New Ease’s capabilities and strong track record. We will continue to execute on the identified pipelines, and expand the portfolio with more quality assets, providing a platform for investors to access institutional-quality opportunities in top tier markets in China,” added Sun Dongping, the Founder and Chairman of New Ease.