China's China Vanke has announced that its logistics real estate fund has changed hands in terms of investors. This happened as the investment vehicle became hobbled with a 50% downsize that amounted to RMB 2.95 billion ($430 million).
Mingtiandi reported that China Vanke had partnered with three new companies-Grand China Fund, Qianhai Hanghui, and Taikang Life Insurance-to breathe new life into the fund. The fund vehicle was established in 2017 and even had RMB 6 billion at one time. It was established to act as funding for logistics projects that happened outside of China.
A shuffle in ownership of the funds had Taikang Life Insurance as the biggest investor of the seven companies that had investment interests. Grand China Fund also emerged as the fund manager, replacing Shenzhen Putai Investment, which had since withdrawn. Taikang Life Insurance holds a 46.82 percent share in the fund, while Qianhai Hanghui maintained a 13.53 percent share.
Other big deals, to the tune of 70 billion yuan ($10.36 billion) happened prior to the China Vanke shuffle. Cheung Kong Property Holdings and Li Ka Shing (Overseas) Foundation led the way with a 20 billion-worth yuan deal. Tycoon Li Ka-Shing decided to sell Century Link, a Shanghai commercial development in the Lujiazu district, to an unnamed Chinese mainland institution.
Another deal happened between Swire Properties and Lucky Melody Limited, who acquired the former's Kowloon Bay property. The payment that had been made was estimated at around HK$6.53 billion. Swire Properties also received a gain of $1.17 billion from the sale of the property.
China Vanke was included in the deals that happened during the time, acquiring Central Plaza in Shanghai from Carlyle Group to the tune of 2.83 billion yuan. China Vanke's portfolio has recently been focused on growing the logistics business, which had since acquired former largest warehouse operator Global Logistics Properties (GLP).
Vanke had since launched 54 new projects tied to logistics, with facilities maintained in places like Hangzhou, Ningbo, Shanghai, and Tianjin. The acquisition of Swire Properties' Central Plaza location had added seven cold storages centers to Vanke's properties. It now lists locations from Swire Properties in Chengdu, Guangzhou, Langfang, Ningbo, Nanjing, Shanghai, and Xiamen.
As of the moment, Vanke is the sole proprietor of 110 logistics centers. These total to about 7,300,000 square meters (78,576,546 square feet), and is located in 36 cities in and around China.
