Chinese logistics properties attract more and more foreign investors
Update Time£º2013-4-5 From: Internet
AS China's e-commerce continue to grow, industrial real estate, which used to be seen as least attractive part of the property sector, is now attracting more and more overseas investors, according to a recent report from the Wall Street Journal.
Logistics property developers and consultants said there had been an upturn in investment interest in China's logistics properties in recent months. This is a result of rising e-commerce and domestic consumption, and the shrinking returns from residential, office and shopping mall properties that has prompted them to seek growth from other sectors.
Most of the investment deals in recent months in China were still in the commercial and residential sectors. But concerns of oversupply in the office and shopping mall sectors in some Chinese cities as well as policy volatility in the residential sector have compelled some investors to look for alternative real-estate investments.
"It's consistent with the global trend of renewed interest in the logistics asset class," said Philip Pearce, managing director at Goodman Group China, quoted by the report. "Prices in other asset classes have gone up, and yields have compressed a bit, but not in industrial property."
Australian-listed property developer Goodman Group, which first invested in warehouses in China in 2009, has 12 logistics projects, mainly in Shanghai and nearby cities, as well as in the Bohai Bay region.