AGP Invests $650M In Warburg Pincus-Backed E-Shang

Dutch pension fund asset manager APG Asset Management N.V. says it has agreed to invest up to US$650 million for an approximately 20% stake in Chinese logistics real estate developer and operator e-Shang, according to an announcement by APG.

Listen and watch APG’s former head of non-listed real estate Asia Daan van Aert on China Money Podcast in March 2013.

APG, with €325 billion (US$442 billion) under management globally, will purchase newly issued shares of Shanghai-based e-Shang, APG’s head of non-listed real estate for Asia-Pacific, Sachin Doshi, confirms to China Money Network.

Doshi was previously a director at APG. He replaced Daan van Aert as head of non-listed real estate last October.

At the same time, AGP and e-Shang will establish a strategic joint venture to develop and hold institutional-grade, modern logistics real estate assets across China.

Since its founding in 2011 by global private equity firm Warburg Pincus and two local entrepreneurs, e-Shang has grown rapidly and currently owns over 1.5 million square meters of completed and ongoing warehouse projects in China.

The company focuses on developing institutional quality warehouses as well as providing logistics services from prime locations across greater Shanghai, Beijing, Guangzhou as well as a number of second-tier cities.

In December 2013, e-Shang secured a US$120 million pre-IPO loan from Goldman Sachs. The company has raised over US$1 billion of equity capital, including over US$200 million from Warburg Pincus.

The Chinese logistics sector has attracted investments from both financial investors and big Chinese e-commerce companies in the past seven months.

In May, Yunfeng Capital, a private equity firm co-founded by Alibaba Group Holding’s Jack Ma, invested "several hundred million RMB" in Chinese courier firm Quanfeng Express.

In April, private equity firm RRJ Capital and Singapore’s Temasek Holdings agreed to invest US$250 million in Chinese logistics warehouse developer Shanghai Yupei Group.

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.

China Expert network