GLP co-founders Jeffrey Schwartz and Ming Z. Mei have had much to celebrate lately
Global Logistic Properties Limited (GLP), the biggest logistics developer in China, announced this week that it has signed a strategic partnership agreement with the country’s largest state-owned logistics services company to develop a nation-wide network of logistics facilities.
In addition to the partnership with service provider Sinotrans Logistics Investment Holding Co., Ltd., the Singapore-listed warehouse builder also revealed today its plans for a 3 million square metre logistics development in southern China’s Dongguan.
Teaming Up to Source New Sites
Under the Sinotrans agreement, GLP will work together with the third-party logistics provider to source and develop new facilities, first in Shanghai and Guangdong, and later in the rest of the country. The project is aimed at taking advantage of the strong demand for warehouses which is driven largely by China’s growing retail and e-commerce sectors.
Commenting on the new partnership, Mr. Ming Z. Mei, Chief Executive Officer of GLP said, “This partnership will enhance our access to strategic land holdings, strengthening our platform and solidifying our position as the top logistics solution provider in China.”
In a statement, GLP said that the partnership will take advantage of “Sinotrans’ capabilities in logistics operations and land-sourcing, to meet fast-growing demand for modern logistics facilities across China.”
18 Million Square Metre Site in Guangdong
In addition to the SinoTrans tie-up, GLP today announced a strategic alliance with state-run Guangdong Holdings Limited to jointly develop logistics and industrial facilities in Dongguan.
The new project, Guangdong GDH Equipment Technology Industrial Park, is said by GLP to be the largest investment project in Dongguan.
The new 18 million square meter (194 million square feet) industrial park site will include industrial, commercial and residential components, with GLP partnering with GDH to jointly develop logistics and industrial facilities on site area of up to 3 million sqm (32 million sq ft).
Just last week the Singaporean developer received investment of $2.51 billion from a Chinese consortium that includes Bank of China Group Investment and private-equity firm Hopu Funds, together with un-named additional investor. In a statement at the time, GLP said that it intends to use the majority of the proceeds to strengthen and further develop its network in China.
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