China’s growing demand for international grade logistics space was demonstrated again this month when The Redwood Group leased 44,517 square metres at its Kunshan Distribution Centre One to a single occupier.
By signing the new lease with Chinese consumer product maker Gold HongYe Paper Group the Singapore-based logistics fund manager and developer was able to find an occupier for 72 percent of the newly completed warehouse facility in a single deal.
The agreement with Gold HongYe Paper is the latest victory for The Redwood Group, which is backed by Sam Zell’s Equity International and Dutch pension fund service provider PGGM, in China’s increasingly competitive logistics real estate sector.
Teaming Up with a Top Tissue-Maker
The leasing agreement is the first collaboration between Gold HongYe and Redwood in China. The Suzhou-based tissue maker is a subsidiary of Jakarta-based giant Asia Pulp & Paper which produces leading brands in China such as Virjoy, Breeze and Zhen Zhen.
Thijs Schoenaker, senior investment manager of PGGM Private Real Estate commented, “For several years now Redwood has been an important partner for us and PGGM is pleased with a reputable tenant as Gold HongYe signing this lease. It confirms the quality of the location and the development by Redwood.”
Kunshan, located just west of Shanghai in Jiangsu province has become a leading logistics centre for supplying eastern China’s rapidly growing consumer markets.
Filling Up Phase One in Kunshan
Redwood Kunshan Distribution Center One, a newly delivered 2-storey 61,851 square metre logistics facility is located in the Kunshan Hi-Tech Development Zone, which is 50 kilometres from Shanghai and 37 kilometres from Suzhou.
The Beijing-Shanghai Railway, the Shanghai-Nanjing Expressway and State Highway 312 pass through the zone, further improving its accessibility with the Shanghai Hongqiao Airport at 45 km from the zone. The facility is built to LEED Silver standards, which is the target LEED level for all of Redwood’s new developments in China.