John Marsh of Logos
Logos Property has announced its acquisition of a 69,000 square metre (743,000 square foot) industrial site in Suzhou’s Wujiang district as the regional logistics developer continues to expand its mainland China platform.
Logos, which operates in Australia, India and Southeast Asia in addition to China, plans to develop the greenfield site in Wujiang FOHO Economic Development Zone into a three-storey ramped logistics park with a gross leasable area of 102,198 square metres, according to a statement from the company.
The announcement of the new project comes just over six months after Logos announced a $830 million joint venture with Canadian real estate fund manager Ivanhoé Cambridge and Danish commercial pension firm PFA Pension to develop additional warehouse projects on the mainland.
East China Project Aims to Serve E-Commerce Clients
Logos’ leadership attributed the new project to growing demand from China’s online shopping sector.
“Rapid e-commerce adoption in China is increasing the scale of new leasing requirements, and we are seeing many tenants configuring operational solutions around multi-story facilities,” Logos joint managing director, John Marsh said in a statement. “The Wujiang FOHO site is a strategic acquisition in a land constrained region that will allow us to service this growing requirement and meet our customers’ continued demand for well located, modern logistics facilities.”
The project in eastern Jiangsu province is located some 55 kilometres west of Shanghai’s Hongqiao airport via the G50 expressway, which is immediately accessible from the site.
“Construction will commence on site shortly, with the park to be completed later this year,” Marsh said. “We are currently in discussions with a number of potential tenants for the park and anticipate the end user will make use of automation technology, an element that is increasingly becoming a feature of large footprint ecommerce operations in China,” he added.
Wujiang FOHO Economic Development Zone is already home to internationally recognised firms including Gap Inc, UK electrical appliance maker Dyson and NASDAQ-listed ecommerce service provider Baozun.com.
Logos Builds Out Warehouse Business in China and India
Logos is going three storeys tall for its new Wujiang facility
Logos, which currently claims a portfolio of mainland China logistics projects either completed or under construction totalling around one million square metres, has also been building out its footprint in India during recent months.
Last October the now eight-year-old warehouse specialist announced that it had set up a $800 million joint venture with Canada’s Ivanhoé Cambridge and QuadReal Property Group to build modern logistics facilities in select cities across the world’s second-most-populous country.
Just last week local media reports in India indicated that Logos was close to raising another $100 million in capital for its India operations.
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