Shanghai Industrial

Asian Cities

1H 2018

 

Shanghai’s key industrial real estate and data centres
Shanghai, in addition to being China’s financial centre, is also one of the country’s key industrial centres, and plays a vital role in R&D for heavy industry in the Yangtze River Delta (YRD) and China as a whole. Home to world’s busiest container port, Shanghai also play an important role in the global logistics industry. A dramatic transformation in China’s industrial, logistics and data centre markets over the last five years has seen increasing investment interest in those sectors, leading to cap rate compression and policy changes.

In 2017, M&A activity also increased in the sectors, most notably the acquisition of Global Logistics Properties (GLP) by a consortium of Chinese investors, including Vanke. GLP owns more than 40% of China’s modern warehousing stock and focuses on expanding in high-demand markets. Other significant, recent news includes the US$140 million of capital raised by E-Shang Redwood (ESR) in February 2018 as well as the deal by a Chinese consortium, Elegant Jubilee, to secure a majority stake in Global Switch, the world’s leading data centre provider.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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