Goldman Sachs is the fourth global investor to team up with mainland logistics developer New Ease this year, as the blue chip investment bank and the Warburg Pincus-backed real estate startup announced a $488 million China warehouse joint venture this week.
New Ease, China’s leading intelligent new economy infrastructure developer and operator, and Goldman Sachs Asset Management announced the joint acquisition of two collection of logistics real estate projects in gateway cities throughout China with a total asset value of $488 million. New Ease, as the investment and asset manager, will provide best-in-class asset management services for these projects.
The first collection of the properties jointly acquired and developed by New Ease and Goldman Sachs Asset Management are institutional-grade, modern warehouse properties located in Kunshan City, Jiangsu, Zhengzhou City, He’nan, and Sanhe City, Hebei. They have been built to meet the warehousing demand from third-party logistics providers, cold chain operators and e-commerce companies. The Zhengzhou project is currently operational. The Kunshan and Sanhe-based projects are expected to be fully functional by the fourth quarter of 2021.
The second collection of the properties are located in Hebei and Hubei, both of which are major logistics hubs in China. The projects will be developed into institutional-grade, modern logistics facilities to meet the rising demand from e-commerce companies and third-party logistics providers, and also to contribute to the overall economic development of central China and the Greater Beijing Area.
Through these the successful joint investment projects by New Ease and Goldman Sachs Asset Management, both parties look forward to exploring more cooperation opportunities.
Mr. Luke Wei, a managing director at Goldman Sachs Asset Management responsible for real estate investment in Greater China, commented, “The continued development of China’s economy, especially through the rapid pace of advanced digitalization of commerce, has further accelerated the development of the logistics warehousing industry and accompanying integrated services. New Ease has strong local capabilities and we look forward to more collaboration in the future.”
Mr. Sun Dongping, the Founder and Chairman of New Ease, said, “We are excited to collaborate with Goldman Sachs, one of the world’s leading investors with deep industry insight. We view the collaboration with Goldman Sachs Asset Management as recognition of New Ease’s capabilities and strong track record in developing first-class new economy infrastructure throughout China.”
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