The Fund has an initial target to invest RMB 2.5 billion equity in distribution, logistics and light manufacturing real estate facilities in selected high growth markets in China. Investments will be driven primarily by customer demand and need for modern facilities delivering the quality specifications of efficiency and through-put demanded by especially today’s leading logistics operators, retailers, light manufacturers and automotive companies. The Chinese industrial real estate market, currently greatly under supplied and under serviced, is expected to grow 8-9 times in size over the next decade (estimate by Jones Lang LaSalle).
The Fund will leverage Redwood’s local team's market knowledge and China development experience along with Redwood Asia's international distribution and logistics real estate development experience and global client relationships.
Guido Verhoef, Head of Private Real Estate and Thijs Schoenaker, Senior Investment Manager at PGGM jointly said: “This investment fits well to the PGGM Private Real Estate Fund with its long term investment policy. Our objective is to diversify our investments across different property types in respect to China. The ‘develop to hold’ strategy provides us with exposure to a high quality portfolio of income generating assets. The logistics property investments are expected to benefit from strong economic growth, urbanization and consumption growth in China. We observe a strong need among companies to set up the supply chain in China. We are pleased to partner with the experienced and decisive Manager The Redwood Group, whose team has executed some of the highest quality distribution and logistics real estate developments and investments in China and elsewhere in Asia.”
Charles de Portes and Stuart Gibson (President and CEO of Redwood respectively) issued a joint statement: "China, the fastest growing and most dynamic economy globally, is experiencing an under-supply of efficient, high quality distribution facilities to keep pace with the tremendous and growing demand. Improving the efficiency and quality of such air, sea, land and rail cargo distribution facilities will contribute directly to improving the supply chain and global competitiveness of logistics in the country. This in turn benefits not only international and domestic firms tied most directly to the rapid export and import growth in China or to vibrant domestic supply-chains, but contributes as well to the efficiency of the economy as a whole. We are extremely excited about moving forward in partnership with PGGM Investments, a strong, experienced and long-standing player in the China real estate market with a reputation for first rate developments in some of the largest metropolitan areas."
The Redwood Group
The Redwood Group (“TRG”) founded in August 2006 by Charles de Portes and Stuart Gibson is an investor in and manager of real estate with top global institutional and governmental investors, particularly in the largest metropolitan areas of Asia.
The senior officers of Redwood led the original expansion into Asia since 1999 of several of the top logistics real estate investment and development platforms globally, executing more than USD 3 billion of logistics real estate investments in Asia since the late 90's, and over 5 million m2 of developments and acquisitions internationally while providing high quality distribution space for some of the largest end users and logistics service providers operating both within Asia and around the world. Additional information about Redwood may be found at: www.redwoodgroup.com PGGM
PGGM is a leading Dutch pension fund service provider offering pension management, integrated asset management, management support and policy advice to its institutional clients. PGGM currently works on behalf of six pension funds, managing about €125 billion of pension assets of 2.5 million people. As a cooperative organisation, PGGM helps its over 570,000 members to secure a valuable future. PGGM works independently or with strategic partners to develop innovative future benefit solutions combining pensions, care, accommodation and employment. www.pggm.nl