HONG KONG May 29 Dutch pension fund APG Asset
Management will pay up to $650 million to take a 20 percent
stake in Chinese warehouse firm e-Shang, also setting up a joint
venture to expand in China, the companies said on Thursday.
E-shang, backed by private equity firm Warburg Pincus
, and APG aim to tap strong demand for warehouses as
Chinese e-commerce booms. The joint venture plans to develop and
run modern logistics real estate assets across China.
"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," Sachin Doshi, APG's head of non-listed real
estate for Asia-Pacific, said in the statement.
(Reporting by Clare Jim and Stephen Aldred; Editing by Edwina