Logistics Investor Redwood Group Hires de Jong-Douglas as MD

Singapore-based logistics investment firm The Redwood Group recently expanded its senior management team by bringing on Dr. Michael de Jong-Douglas as the group’s new managing director. The hire comes as global and regional players place increased focus on opportunities for investment in China’s lucrative logistics real estate market.

While no official announcement has been made yet, according to industry sources, de Jong-Douglas has been brought on board to take charge of acquisitions, developments, client-handling and research for the privately held firm. The Redwood Group has warehouse projects in Japan and China, and de Jong-Douglas will be operating from the company’s headquarters in Singapore.

The 17-year logistics real estate veteran has worked in Asia since 2009, first as Deputy CEO for Mapletree Logistics Real Estate Trust, and most recently as Director of Real Estate for private investment house Oxley Capital Group, based in Singapore.

Before relocating to Asia, de Jong-Douglas spent 11 years with Prologis, including stints as the regional head of central & eastern Europe, and head of property management for Europe at the logistics developer.

The Redwood Group Picking Up Its Game

With the addition of de Jong-Douglas this week, and the local hire of an investment and strategy manager for China last week, Redwood appears to be gearing up to make a stronger push for a piece of the increasingly competitive China logistics real estate market.

Since hiring Oliver Treneman as the group’s China managing director in 2012, Redwood has put together projects in Beijing, Guangzhou, and Kunshan (just outside of Shanghai), totalling more than 126,000 square metres of gross floor area.

In August of last year, Redwood entered into a deal with noted US investor Sam Zell’s Equity International, who committed an unspecified sum of cash towards funding the firm’s expansion.

Increased Competition for China Logistics Real Estate

However, there has been a rapid influx of new capital into the market recently, with global fund investors pouring more than $3.81 billion into China’s warehouse developers since August last year. These money managers come seeking a share of the profits reaped from supporting the country’s rapidly growing retail and ecommerce sectors.

Just last month, Dutch pension fund asset manager APG Asset Management announced that it is committing up to $650 million to acquire 20 percent of China warehouse developer and operator e-Shang, and to set up a joint venture with the Warburg Pincus-backed startup.

The investors are attracted by the high single digit investment yields that China warehouse developments have earned in recent years, however, the surge in interest also means even greater competition for scarce industrial land locations.