Equity International has bought a stake in a Chinese industrial and logistics development company for $46 million – it’s third portfolio company investment in the country, according to a statement.
The Chicago-based private equity real estate firm, co-founded by Sam Zell and Gary Garrabrant, said it closed the deal with the private Shanghai Yupei Company, which develops, owns and operates modern industrial, warehousing and logistics properties in China, this week.
Yupei currently has five properties in four cities across China, comprising approximately 350,000 square metres. The deal marks Equity International’s third portfolio company in China.
Garrabrant said there was increasing demand for new warehouses in China, driven in part by the obsolence of old stock and a lack of suitable space. He said the growth in domestic consumption would fuel this further adding there were “powerful fundamentals” for the sector.