On 12 October 2021, CapitaLand China Trust ("CLCT"), a subsidiary of CapitaLand Investments, announced its intention to acquire a logistics asset package from an unaffiliated third party, including four high-quality logistics assets located in Shanghai, Kunshan, Wuhan and Chengdu. This marks CapitaLand China Trust's first foray into the Chinese logistics market, further expanding its presence in the new economy following the previous acquisition of five industrial parks, in line with its multi-stage growth strategy, making its long-term income more diversified and resilient. The transaction is expected to close by the end of 2021. Upon completion of the acquisition, CapitaLand China Trust's assets under management will increase by 8.0% to S$4,729.2 million.
The four high-quality modern logistics assets acquired had a total GFA of 265,259 sqm, with a occupancy rate of 96.3% as of August 31, 2021 and a weighted average lease term of 2.1 years. Three of the projects were completed between 2016 and 2018 and another in 2010. These projects have three major characteristics: first, located in the main logistics hub cities in China, close to ports, airports and railway nodes, and the strategic location can serve the growing domestic logistics demand in the eastern, central and southwest regions of China; second, with high-tech, modern logistics facilities to meet a wide range of e-commerce and logistics needs; third, have a strong domestic tenant base, including China's leading technology-driven supply chain solutions and logistics service providers. as well as local third-party logistics market leaders.
Mr. Chen Ziwei, Chief Executive Officer of CapitaLand China Trust Management Limited, said, "The acquisition of this high-quality logistics asset package marks CapitaLand China Trust's entry into China's booming logistics market. The investment is in line with the direction of China's economic transformation into a domestic consumption-driven, high value-added and service-oriented economy. Driven by favorable government policy support and accelerated growth in e-commerce, there is a strong demand for logistics assets, and this acquisition will allow us to seize market opportunities. The continued good supply and demand situation and strong net absorption of China's logistics asset market will maintain the rental growth of high-quality logistics assets. ”
Pan Zixiang, Chief Executive Officer of CapitaLand Investments China, said: "Following the first data centre, this acquisition has added our first logistics asset package in China, which is the in-depth promotion of the Group's investment strategy in China and the strategic direction of accelerating the layout of new infrastructure in China. We are optimistic about the development prospects of the new economy industry, and CapitaLand's diversified fund platform allows us to better grasp investment opportunities and continue to expand the scale of assets under management. We hope that CapitaLand's continuously upgrading industrial chain layout will provide assistance for China's urban renewal and industrial upgrading, and create greater value for society. ”
As the Group's investment focus shifts to new economy sectors, including industrial parks, logistics and data centres, CapitaLand is actively focusing on investment opportunities in China and acquired its first data centre project in The country in April this year. Upon completion of the acquisition, CapitaLand's new economy assets in China will be expanded to 9 industrial parks, 4 logistics properties and 1 data centre.
Text/Book of Lo
Editor/Lee Truss