China’s Sino-Ocean Capital hits first close of logistics fund at $232m

Logistics in a warehouse.

Sino-Ocean Capital, the investment arm of Chinese property developer Sino-Ocean Group, has announced the first close of its modern logistics fund at 1.6 billion yuan ($232.6 million).

Sino-Ocean Capital managing director Lin Chuan believes that compared to developed markets, there are still gaps within China’s logistics market in terms of infrastructure, management, and information technology.

The fund has also made its first investment by leading a 300 million yuan ($43.6 million) round in Beijing-based seafood supply chain operator Xinliangji. Other investors that joined the round include Eastern Bell Capital and FreeS Fund.

“We have always explored methods to create breakthroughs in the industry and to do so, we have to focus on the supply chain of logistics in order to improve quality and efficiency. Our investment in Xinliangji is a good start,” he said.

Sino-Ocean Capital deputy general manager Fanming Zheng said he expects the modern logistics fund will hit its final close by end of the year.

In a statement, Xinliangji noted that it was the largest single round raised by a supply chain startup in China in 2019. Founded three years ago, the startup raised 50 million yuan and 120 million yuan in 2017 alone.

According to a report by South China Morning Post, Sino-Ocean Capital also plans to launch a 3 billion to 5 billion yuan ($436.1 million to $726.9 million) fund to acquire logistics properties, tapping into the growing demand for warehousing properties.

The investment arm has invested in nine logistics firms across China and is now seeking to strengthen its foothold in warehousing, as the market is currently facing a shortage of high-quality warehouse space.

Lin was quoted saying Sino-Ocean Capital targets to invest about 48 billion yuan ($6.9 billion) into logistics property in the next five years.

Last year, Sino-Ocean Capital partnered ZM Logistics to secure a massive industrial property in Chongqing. Subsequently, both parties jointly launched a 6 billion yuan ($872.5 million) cold chain warehousing fund to invest in the cold storage space.

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.