APG buys 20% e-Shang stake from Warburg to increase Chinese warehouse exposure


e-shang warehousesDutch pension fund manager APG has bought a 20 per cent stake in Warburg Pincus-owned Chinese warehousing developer e-Shang in a deal worth up to $650m.

Warburg founded e-Shang in 2011 and has grown it to more than 1.5 million square metres of completed and in-development warehouse space in China.

Sachin Doshi, head of non-listed real estate for Asia-Pacific at APG, said, “We are delighted to partner with e-Shang and Warburg Pincus on this exciting venture.

“We have watched this sector closely over the last few years and this investment is consistent with our strategy to gain the right exposure to the Chinese logistics real estate market.

“With the continued growth of third party logistics, e-commerce and the evolution of domestic consumption patterns combined with a severe shortage in the supply of modern logistics facilities, we strongly believe that the logistics real estate sector in China will be a long term beneficiary of these trends.”

In December 2013 e-Shang  secured a $120m pre-IPO loan from Goldman Sachs, and has raised more than $1bn of equity capital to date.

Warburg executive director Jeffrey Perlman said, “The significant commitment by APG is yet another meaningful endorsement of e-Shang’s business model, strong management capabilities and outsized growth potential.

“With APG’s investment and the recent financing from Goldman Sachs, e-Shang is well positioned to more than triple the size of its portfolio over the next several years with the plan of an eventual IPO.

“We look forward to working closely with APG and continuing to support e-Shang as it enters its next phase of growth.”

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