Private equity pumps US$250m more into warehouse developer Yupei

Private equity investors led by RRJ Capital have injected another US$250 million into warehouse developer Shanghai Yupei in the latest bet on China's growing demand for logistics services.

The investment follows the US$250 million that RRJ, one of Asia's largest private equity funds, and SeaTown pumped into Yupei in April last year, and US$200 million Yupei raised from private equity powerhouses Carlyle and Townsend in 2013.

The logistics facilities developed by Yupei have been regrouped into a Cayman Island-registered vehicle, China Logistics Property (CNLP), which has a project pipeline of 7.8 million square metres of gross floor space in 28 locations.

"Over the past 12 months, CNLP has demonstrated a stellar track record in project development, and we have utmost confidence about its ability to execute and scale up its offering of modern, world-class logistics centres to its growing customer base," RRJ chairman and chief executive Richard Ong said.

CNLP aims to complete more than seven million square metres of net leasable logistics space on the mainland over the next three years.

"With the support of favourable government policies, the rapid development of e-commerce in China and fast-growing domestic consumer demand, we are very confident about the future demand for modern and high-end warehousing facilities," Yupei chairman and chief executive Li Shifa said.