Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Vanke Teaming with Blackstone to Explore China Warehouse Market

2014/04/01 by Michael Cole 1 Comment

China Vanke Executive Vice President Mao Daqing

China Vanke Executive Vice President Mao Daqing

Vanke, the country’s largest property developer by revenue, is holding discussions with private equity giant Blackstone Group about a real estate fund to pursue opportunities in China’s logistics real estate sector, a senior company official revealed over the weekend.

The company also intends to expand into more overseas markets, following its recent forays into US luxury housing.

Speaking to the local press in a group interview, Vanke Executive Vice President Mao Daqing said the company has an unfavorable view of the residential market in China this year, and would be turning to the warehouse sector, where yields and demand have remained strong.

The rapid expansion of China’s retail industry, particularly the boom in ecommerce, has fueled demand for international grade logistics properties, and warehouse development has drawn significant investor interest in recent months.

In February, a Chinese consortium invested $2.51 billion into leading regional logistics developer Global Logistics Properties (GLP), and during December, Goldman Sachs agreed to provide a US$120 million pre-IPO loan to Shanghai-based start-up warehouse developer e-Shang.

Those warehouse investments were presaged by a pair of private equity deals last year when Sam Zell’s Equity International announced a strategic partnership with The Redwood Group to invest in logistics developments in China, and Carlyle Group agreed to invest up to US$400 million in a joint venture with local logistics developer Yupei.

Vanke Skeptical on Local Housing Market

“There could be a problem with China’s real estate sector this year” caused by developers overbidding for land, and home prices climbing beyond the reach of buyers, Mao was quoted as saying in the China Daily.

However, the real estate executive clarified that he did not see China as on its way to a real estate crisis, adding, “A collapse of the whole market is unlikely, and problems will occur mainly with small developers with limited financing channels.”

Looking for Deals in the UK, Australia and Singapore

Vanke New York groundbreaking

Vanke, Hines, Cindat and RFR breaking ground in February

Mao also explained Vanke’s controlled internationalization strategy, particularly compared to more aggressive competitors such as Shanghai’s Greenland Group.

“We will only go to mature markets with strong local partners, even though the profit margins there may be lower than in emerging markets,” Mao added. In the US Vanke recently broke ground on a 61-storey luxury residential tower in Manhattan that it will develop together with US developers RFR and Hines, as well as receiving financing through investment fund China Cindat. Last year the developer started work on a San Francisco project with US developer Tishman Speyer.

“Vanke is also seeking opportunities in the United Kingdom, Australia and Singapore,” Mao said. Vanke’s preference for partners is in contrast to Greenland and Dalian Wanda, both of which have tended to acquire early stage development projects which they will try to execute on their own, apparently in search of higher rates of return.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: Blackstone, China Vanke, crebrief, Greenland Group, highlight, Logistics, Mao Daqing

https://player.vimeo.com/video/644203510?h=bc8945e2fd

Trackbacks

  1. Blackstone Prefers China’s Warehouses Over Residential | Oxstones Investment Club™ says:
    2014/07/31 at 8:09 pm

    […] the Shenzhen-based developer is holding discussions with the private equity giant about setting up a real estate fund to pursue opportunities in China’s logistics real estate […]

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

Multi-Family Investment in Japan Thumbnail
Japan’s Multi-Family Market Still Has Room to Run After Banner Year: MTD TV
japan btr3
Investors Diversify Japan Multi-Family Acquisitions in Search of Yield: MTD TV

More MTD TV Videos>>

People in the News

Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India
Antoine Mesnage
AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

Antoine Mesnage

AXA IM Alts is shaking up its leadership team Down Under with the appointment of Antoine Mesnage as the French firm’s … Read More>>

More Industry Professionals>>

Latest Stories

Lin Ho Man
Evergrande to ‘Vigorously’ Fight Winding-Up Petition Filed by Disgruntled Investor
Sunac Sun Hongbin
Sunac Meets Investors to Seek Second Extension on $600M in Domestic Bonds
Actis to Invest $700M in India Life Science Assets and More Asia Real Estate Headlines

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.

"*" indicates required fields

Terms of Use and Privacy Policy*