Hong Kong-based private equity firm RRJ Capital has teamed up with Singapore sovereign wealth fund Temasek for a $250 million investment in Chinese logistics developer Shanghai Yupei Group, according to a Yupei statement.
Their capital commitment follows a $200 million investment from the Carlyle Group and international investment advisor Townsend in August of last year.
It was not disclosed which fund RRJ’s investment came out of, but the Richard and Charles Ong-led private equity firm has announced that it has begun soft marketing for its debut real estate fund with a target of $500 million. The fund is to be used for investments in stakes in Chinese property developers focused on the country’s growing middle class and domestic consumption. As such, Shanghai Yupei would theoretically fit the bill.
The firm is also investing out of its first private equity fund which attracted a record $5.8 billion from investors.
Temasek is investing out of its $3 billion subsidiary SeaTown Holdings International. Charles Ong, co-chairman, co-chief executive and one of the founders of RRJ, used to be the co-chief executive of SeaTown before he left Temasek.
“This round of capital raising… completes Yupei's equity financing needs for the foreseeable future based on its enhanced national expansion plans,” the firm said in its statement.
Following significant growth opportunities it has found, the company said it has “expedited” its 2017 plans to own and operate a nationwide logistics warehouse network with more than 37 million square feet of net leasable area. The proceeds of this investment will mostly be used to accelerate land acquisition.
“We are confident Yupei's experienced and professional management team is able to execute further nationwide expansion of its quality warehouses and logistics services to its growing customer base,” Charles Ong said.
“China is an attractive logistics market, with strong fundamental demand and a limited supply of modern logistics facilities,” added Jimmy Phoon, chief executive of SeaTown. “As a leading player in the industry, we believe Yupei is well-positioned to capitalize on this rapidly growing market.”
Shanghai Yupei has a history of private equity investors, beginning with Equity International in 2008. Singapore-based developer Global Logistic Properties paid $53.6 million in 2011 for EI’s 49 percent stake.
PERE revealed in August that the GLP-Yupei partnership was in the process of being dissolved as the one-time partners turned competitors, and Yupei was understood to be buying GLP out.