Colliers Assists in the Largest Second-Hand Industrial Land Transaction in the Greater Bay Area
Recently, Colliers successfully assisted Maersk to dispose of its industrial assets in the Greater Bay Area, which is the largest transaction of second-hand industrial land in the Greater Bay Area in recent years.
Maersk Group, headquartered in Copenhagen, Denmark, is the world's largest container shipping company with a global service network. In 2019, Maersk planned to reduce its fixed asset holdings and invest more in its core business, and as such it needed to dispose of its industrial assets in the Greater Bay Area. Colliers was selected from a number of bidders and won the exclusive sale agency appointment.
The Maersk Container Industrial Project site located in Dongguan, a famous manufacturing city in Guangdong Province, is in the middle of the "double-zone overlap" between the Guangzhou-Shenzhen-Hong Kong-Macao Science and Technology Innovation Corridor and the Guangdong-Hong Kong-Macao Greater Bay Area National Strategy, and is at the forefront of receiving industrial spillover resources from Guangzhou and Shenzhen. The land area is 300,000 square meters (about 450 acres), it is zone as a class of industrial land, and the total construction area is about 78,000 square meters.
Challenges and Solutions
The local government took a very rigorous approach to this transaction, and Colliers had regular strategic communications with them to develop a unique disposal strategy for this project, approaching market buyers in a low profile manner. During this time the project disposal process coincided with the COVID-19 pandemic, throughout which Colliers overcame various difficulties and facilitated communications between all parties to ensure a smooth transaction process - from assisting in several video conferences to the final "cloud signing".
Under the guidance of the government, Colliers relied on its rich market experience and deep understanding of customer needs along with low-key customized disposal solutions to find suitable buyers. In the end, Colliers assisted Maersk in successfully signing an asset purchase agreement to both parties' satisfaction. This is also the largest second-hand industrial land transaction in the Greater Bay Area in recent years.