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CapitaLand China Trust first entered China logistics market, reflecting strong growth momentum in logistics demand and asset value

shanghai new 1530 EN

In October, Capitaland China Trust acquired a logistics portfolio in Shanghai, Kunshan, Wuhan and Chengdu, with total value of RMB1.68 billion. As of the end of August 2021, the occupancy reached 96.3% with WALE of 2.1 years. The transaction is expected to be delivered by the end of 2021. Upon the completion of the transaction, CLCT is expected to see the asset management scale to increase 8% and reach S$4.7 billion.

Colliers’ View:

The logistics industry, as one of the representatives of China's new economy, is developing rapidly. This transaction allowed CapitaLand China Trust to enter the logistics market in China for the first time. The four assets are located in major logistics hubs in eastern, central, and southwestern China, all with superior geographic location and strong logistics demand. The projects are of high quality with high-tech modern management. After the completion of this acquisition, CapitaLand further expands its asset layout, which will include nine business parks, four logistics properties, and one data centre. The entry of this large foreign institution into the China logistics market reflects the strong demand in the logistics real estate market and the future growth trend of asset value. Net absorption and rent are expected to further grow, and the cap rate is expected to remain stable.