RRJ, Temasek To Inject $250M In Shanghai Yupei Group


Chinese logistics warehouse developer Shanghai Yupei Group says that RRJ Capital and an investment company managed by SeaTown Holdings International, an investment firm wholly-owned by Temasek Holdings, have agreed to invest US$250 million in Yupei, according to a company announcement.

The privately owned Yupei says the latest investment, together with the US$200 million investment it raised last year from The Carlyle Group and The Townsend Group, completes Yupei’s equity financing needs for the foreseeable future.

Yupei says it has expedited its 2017 plans to own and operate a nationwide logistics warehouse network with more than 3.4 million square meters of net leasable area.

"China is an attractive logistics market, with strong fundamental demand and a limited supply of modern logistics facilities," says Jimmy Phoon, CEO of SeaTown Holdings International.

Investors have been placing bets in the Chinese logistics sector lately.

In January, Tencent says it will acquire 9.9% of Hong Kong-listed Chinese logistics center developer China South City for US$193 million.

Last August, CITIC Capital Holdings Limited, Oriza Holdings and China Merchants Group acquired 25% of Shenzhen-based Chinese logistics firm S.F. Express.

At the same time, Sino-Europe private equity firm Cathy Capital Private Equity announced that it has invested US$20 million in Shanghai-based Zhengming Modern Logistics Co.

Last November, Singapore-based Global Logistic Properties Ltd. launched a US$1.5 billion China logistics infrastructure fund to develop modern logistics facilities in China.

RRJ Capital currently manages US$6 billion across two private equity funds focused on China and South-East Asia.

The firm is founded by Richard Ong, former founder and CEO of Hopu Fund. Before that, Ong spent 15 years with Goldman Sachs with the latest position as co-head of Asia Ex Japan investment banking.

The firm’s co-CEO is Charles Ong, formerly with Temasek Holdings holding positions including chief investment officer and chief strategy officer.

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