International property developers, Hines, have teamed up with Carlyle-owned PE platform, Metropolitan Real Estate Equity Management, to acquire a 33,800 sqm cold storage facility and adjacent development site in China’s Greater Bay Area.
The deal is the second GBA logistics deal in a week, coming hot on the heels of Blackstone’s $1.1bn logistics park acquisition in Guangzhou.
The Class A cold chain asset and development site is located in Dongguan’s Shatian District, a major logistics hub for the Greater Bay Area. The GBA is a major financial and industrial hub on China’s southern Pearl River Delta, and includes nine cities including Hong Kong, Macau, Shenzhen and Guangzhou. Over 70 million people live and work in the region.
In addition to assuming ownership of the existing operating asset, Hines and Metropolitan will build an additional multi-storey cold storage complex on the adjacent site.
In an announcement released by the company, Hines Managing Director, Claire Cormier Thielke said, “The population growth, policy support, and connectivity of the Greater Bay Area create a compelling story for both general and specialized logistics. We are enthusiastic about the fundamentals of cold storage and the pursuit of transactions in this space as demand grows in a post-COVID environment.”
Metropolitan Managing Director John So added, “We are very pleased to partner with Hines on a project which we believe will be an integral asset in the cold chain infrastructure in the Greater Bay Area.”
Hines has been active in the logistics sector since 1957. Since its founding, the firm has acquired 38 million square feet of logistics space and developed an additional 45 million square feet in the sector. Globally, the firm has approximately $144.1bn of assets under management across a wide range of property sectors and development risk profiles.
Hines opened its first China office in 1996 and was one of the first international real estate firms to enter the country. Since 1996 the firm has developed and acquired over 14 million sq. ft. of assets in China, valued at $4.4bn across.
Hines’ Greater Bay Area new business team based in Hong Kong and Shenzhen will manage development of the new Dongguan facility.