Goldman Sachs Group’s asset management arm said on Tuesday that they, together with a company co-founded by private equity firm Warburg Pincus, jointly acquired logistics assets in China to the value of $488 million. The assets, which are mostly part of real estate projects, are located in gateway cities across China.
In addition to modern warehouse properties in the Southern Chinese city of Kunshan and the central cities of Zhengzhou and Sanhe, Goldman Sachs Asset Management and New Ease got their hands on properties in central China’s Henan and Hubei provinces which are expected to be converted into facilities for third party logistics providers. This move comes as the companies look to tap into the Chinese eCommerce market, which has grown significantly since the outbreak of the global pandemic.
Other deals involving China’s eCommerce sector and supply chain include a deal by private equity firm FountainVest Partners in which they decided to purchase Chinese logistics firm CJ Rokin from South Korea’s CJ Logistics Corp. As a result, CJ Rokin’s value was boosted to 6.9 billion yuan ($1.07 billion).
With its headquarters in Shanghai, New Ease, the company co-founded by Warburg Pincus, manages a portfolio of over six million square meters of projects, either in operation or under development.
