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Colliers Empowers LaSalle Investment Management to Exit High-End Logistics Asset in Beijing

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Colliers Empowers LaSalle Investment Management to Exit High-End Logistics Asset in Beijing

Leveraging its accumulated global client platform as well as its fast and accurate resource integration capabilities, Colliers recently facilitated a transaction between LaSalle Investment Management and a leading international logistics property operator for a prime logistics project in Beijing.

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The project is owned by Asia Opportunities Fund IV. Logiport, a logistics asset management platform of LaSalle, partnered with Zenith  Logistics to develop the project in accordance with international standards for first-class logistics and warehousing properties. It has since achieved LEED Gold certification. At the same time, Logiport has attracted many famous and high-quality enterprises from logistics, fresh food distribution, automotive and other industries within a short period of time with its excellent investment and operation ability. The project is a very rare logistics asset in the Beijing market due to its high property quality, excellent location, high tier tenant background and efficient management. The transaction is also the only high-quality logistics asset with stable cash flow that has been sold in the Beijing real estate investment market in the past few years.

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LaSalle Investment is the world's premier real estate investment platform, with approximately $73 billion in assets under management globally as of the third quarter of 2021. According to PERE, in the past 12 months, LaSalle Capital has raised a total of $3.8 billion in private equity funds in the Asia Pacific market.

In recent years, logistics properties in Beijing and surrounding areas have retained immense popularity. It has become difficult to find a warehouse in this area. According to Colliers’ research data, as of the second quarter of 2021, the total inventory of high-standard warehouses in the Beijing logistics property market was 2.41 million square meters, and the overall demand for Grade A warehouses in the Beijing market is in short supply, with the occupancy rate of Grade A warehouses remaining at a high level.

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As of the second quarter of 2021, the occupancy rate of Grade A warehouses in Beijing was adjusted to 98%. From 2010 to 2019, rents in the Grade A logistics warehouse market in Beijing have continued to rise. As of the second quarter of 2021, the average rent of Grade A logistics warehouse in Beijing was maintained at RMB1.74/day/sqm, and the overall rent is expected to continue increasing through 2022.

Total supply, total absorption, and occupancy rate of Grade A logistics warehouses in Beijing

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Through accurate targeting of the buyer and prompt facilitation of the transaction process, we were honored to complete the client's engagement. The success of this transaction not only demonstrates the vitality of Beijing's industrial and commercial real estate along with the high level of activity in North China’s overall market, but also proves the growth potential of logistics real estate in the current Chinese market. Logistics assets with good quality and sound operation will continue to be favored by investment institutions. Colliers will continue to bring its expertise to the table to enable both buyers and sellers to achieve a win-win situation.

                                                                                   —— Betty Wang, Managing Director, Capital Markets & Investment Services | China