PGGM has boosted its investments in Chinese logistics, committing a further $160m (β¬148m) to a strategy managed by the recently merged Asian logistics companies e-Shang and The Redwood Group.
The Dutch pension fund asset manager has now invested $430m in the strategy following an initial β¬95m investment in 2012 on behalf of the PGGM Private Real Estate fund and a further $144m .
Thijs Schoenaker, senior investment manager at PGGM Private Real Estate, said: βOver the past years, they have built up a sustainable and high-quality portfolio and platform in China.β
As , e-Shang and Redwood are merging to create one of Asiaβs largest sector specialists.
The rebranded e-Shang Redwood (ESR) will have more than 3.5m sqm of projects in China, Japan and South Korea.
Schoenaker said the merger would further strengthen the platform and add value for customers in Asia.
βAs a result, PGGM is keen to continue to invest with ESR, as one of our strategic operating partners in Asia,β he said.
Redwood has been targeting Chinese logistics on behalf of the fund in a βdevelop and holdβ approach since the fundβs inception in 2012.
Charles de Portes, president at ESR, said the company was capturing the βstrong momentumβ of logistics real estate growth in China.
βPGGMβs increasing investments with us in the region since 2012 have proven timely for long-term value creation,β he said.
β[It] continues to be a key investment partner and now holds more than $600m of equity commitments with ESR across China and Japan.β
Dutch pension fund group APG paid $650m for a 20% stake in e-Shang .
E-Shang established a joint venture with APG and the Canada Pension Plan Investment Board via its Kendall Square Logistics Properties subsidiary, to invest $500m in South Korea.
