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.
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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.
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“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.
