Global Logistics Properties (GLP), the Singapore-listed logistics real estate developer and investment manager, has signed an agreement to develop BMW Brilliance Automotive’s largest distribution center in China. When construction is completed, the facility will be the car company’s largest distribution center in Asia, according to a GLP statement.
The 807,000-square-foot build-to-suit facility, to be built at GLP Park Lingang in Shanghai, will be developed in phases. The first phase, comprising 592,000 square feet of gross floor area, will commence construction by the end of this year, and it is understood that construction for the entire facility should be completed within a year. The lease and terms for the pre-let were not disclosed.
BMW Brilliance Automotive is a joint venture between car companies BMW and Brilliance Auto in China, focused on the production, distribution and sale of BMW passenger cars in the country. This is the first time the joint venture has directly partnered with GLP in China.
“With BMW Brilliance Automotive’s dynamic growth in China, we need a very strong logistics network and we value working with trustworthy and reliable partners like GLP,” BMW Brilliance’s vice president Christian Mueck said in the statement.
GLP Park Lingang will give BMW Brilliance a prime location for distribution, according to the statement. The 5.9 million square foot logistics park is close to Yangshan Deep Water Port and has “convenient access” to Pudong International Airport, Hongqiao airport and the Shanghai central business district. Additionally, the Lingang Highway connects to park to nearby coastal provinces Zhejiang and Jiangsu.
“[BMW Brilliance] already uses our facilities through other suppliers and we are excited to further strengthen our relationship,” president of GLP China Kent Yang said in the statement. “The auto parts industry is a key driver of demand for us, thanks to strong domestic consumption, and now represents 9 percent of our total leased area in China.”
GLP has a 226 million-square-foot property portfolio across China, Japan and Brazil and has $16.2 billion in assets under management. In China, the firm has more than 161 million square feet either completed or under development, totaling $6.8 billion. However, unlike in its other markets of Japan and Brazil, it currently has no fund management business in the country.