Warburg Pincus-backed Chinese logistics infrastructure services operator New Ease Limited on Tuesday announced a tie-up with Canadian global real estate manager QuadReal Property Group to launch a logistics development fund.
The fund, dubbed New Ease Gold Development L.P, has a total equity commitment of up to $1 billion, New Ease said in a statement.
The fund will deploy capital in China’s logistics sector especially in top-tier cities, which are the hubs for manufacturing and consumption.
New Ease, which will serve as the investment and asset manager for the fund, claims that it has selected a portfolio of pipeline assets amounting to $1 billion. Once fully deployed, New Ease’s assets under management (AUM) will reach $7 billion, while QuadReal’s global industrial properties will be scaled up to nearly 9 million sq m.
“The partnership with QuadReal is a recognition of New Ease’s capabilities and strong track record. We will continue to execute on the identified pipelines, and expand the portfolio with more quality assets, providing a platform for investors to access institutional-quality opportunities in top tier markets in China,” said New Ease co-founder and chairman Sun Dongping in the statement.
Shanghai-based New Ease operates as a specialist of logistics real estate with a target to invest and build novel warehouse properties in the country. As of now, it has approximately $5 billion AUM and owns over 5 million sq m of projects.
Warburg Pincus had initially seeded an aggregate of $8 billion in New Ease. Warburg Pincus had earlier this week filed with the U.S Securities and Exchange Commission that it is in the market to raise a $1.5-billion Asia real estate fund.
Headquartered in Vancouver, QuadReal manages a portfolio of assets worth over $50 billion spanning 17 countries.