On February 28, two subsidiaries of Shenzhen State-owned Assets Supervision and Administration Commission (SASAC), namely Shenzhen International Holdings (Shenzhen) Co., Ltd. ("Shenzhen International") and Kunpeng Capital, jointly acquired a 23% stake in Suning at RMB14.8 billion. To leverage local resources of Shenzhen International, Suning plans to set up its South China regional headquarter in Shenzhen to comprehensively improve the operation capacity and corporate brand awareness of Suning in the Greater Bay Area.
Colliers International Valuation and Advisory Services commented:
Suning is one of the largest retailers in China with logistics warehousing and distribution network spanning over the country. In recent years, Suning’s business has expanded to the department stores, sports, real estate, logistics, etc. As a comprehensive infrastructure and logistics service provider listed in Hong Kong, Shenzhen International specialises in logistics and infrastructure investment. With the injection of state-owned capital, competition in logistics property market will be further intensified. Downward movement in cap rate of the logistics sector might be anticipated.