Equity makes first investment in China warehouse

China – Equity International, a US-based privately held investment company has invested US$46 million in Shanghai Yupei Company, in the hopes of banking on the growth projected in the sector.

Yupei, founded in 2000, develops, owns and operates modern industrial, warehousing and logistics properties in China. The company is focused on build-to-suit and speculative developments in and around major transportation and commerce hubs, leasing to high-quality domestic and international tenants, including 3PLs.

"Equity International has pursued the warehouse and logistics sector based upon powerful fundamentals, namely the explosive growth of consumerism in China," commented Gary Garrabrant, CEO of Equity International. "Yupei is ideally positioned to achieve scale and leadership in this high-growth sector. Beyond an outstanding portfolio company, we have an exceptional operating partner in Li Shifa."

Yupei's current portfolio includes five properties in four cities across China, totalling approximately 350,000 sqm. With this investment, Equity has a total of three portfolio companies in China.

"The demand for modern warehousing property in China is being driven by an increasing obsolescence and historic lack of suitable space and increasing movement of goods within the country as a result of rising consumerism," the company said. "Significant demand growth from existing and arriving companies in China is expected to continue, in which Yupei is well-positioned to participate."