With the rise in online shopping due to the Covid-19 pandemic, China’s strong e-commerce sector growth is attracting overseas investors to logistics assets on the mainland, reports the South China Morning Post.
PGIM Real Estate, a unit of PGIM–the $1.5 trillion global asset management business of New York-listed Prudential Financial–is investing $323 million together with its partner New Ease China, to acquire logistics assets in Nanjing, Shanghai and Langfang.
“The properties are a significant boost to our regional portfolio due to their optimal locations and long lease tenures,” Benett Theseira, PGIM Real Estate’s head of Asia-Pacific, said on Wednesday. “We expect continued strong interest and liquidity for logistics assets in China, given the structural shift towards e-commerce. This shift will continue to fuel demand for quality assets in the right locations, supporting long-term growth across our portfolio.”