Baring Private Equity Asia (BPEA) Real Estate- the property arm of BPEA has decided to invest around $480 million in Chinese logistics property platform Forest Logistics, the media reported.
BPEA raised a major portion of the fund for Forest Logistics in the first two months of this year. A portion of the investment will also come from its BPEA Real Estate Fund II, which closed in 2018.
Interestingly, the fund was raised when coronavirus cases peaked in China-where the virus originated last year.
Mark Fogle, head of real estate for BPEA Real Estate told the media, “Demand for high-quality modern space is increasing much faster than supply, and has accelerated since the COVID-19 outbreak as people change the way they shop.”
According to reports in the media, in the last 16 months, Forest Logistics has acquired eight sites in Beijing, Shanghai, Xi’an, and Chengdu, representing a combined 683,000 sq.m. of leasable GFA.
In the month of March, US-based asset management company CBRE Global Investor raised around $900 million for its CBRE Asia Value Partners V fund to invest in real estate in the Asia-Pacific region.
In a statement, CBRE Global Investors revealed that the fund has received commitments from various sovereign wealth funds, pension funds, and investors from the Middle East, Europe, and North America.
The fund is a part of the CBRE Global Investor’s flagship pan Asia value-add investment program launched in 2009. It will invest in real estate assets with an eye on the logistics assets as well in the Asia-Pacific region. It will also seek opportunities in other sectors that offer attractive returns.