International Finance

JP Morgan signs logistics deal with China’s New Ease

JP Morgan China
The joint venture will invest in logistics assets across China

JP Morgan Asset Management has entered into a joint venture with Shanghai-based developer New Ease, creating a $600 million portfolio to invest in logistics assets across China, the media reported.

The initial portfolio consists of logistics facilities in cities such as Shanghai, Nanjing, and Suzhou.

New Ease founder and chairman Sun Dongping told the media, “Tenant demand for quality logistic facilities remains robust and perhaps has even strengthened as consumers increasingly shift to e-commerce.”

David Chen, JPMorgan Global Alternatives’ chief investment officer for real estate in Asia Pacific said that high-quality logistics assets are still in short supply in China.

The cost to rent for logistics facilities climbed 0.9 percent in the first three months of the year.

Overall, China’s logistics sector also expanded its recovery in the month of April, according to local media reports.

The logistics performance index, compiled by the China Federation of Logistics and Purchasing (CFLP), was up 2.1 percentage points month on month to 53.6 percent in April. Business volume also climbed 2.1 percentage points month on month to reach 53.6 percent in April, as the country gets back to its feet after being hit by the coronavirus pandemic.

According to the state post bureau, the country’s last-mile delivery sector also witnessed a 40 percent increase in its business volume during the past five-day May Day holiday.

Ecommerce has picked up pace, not only in China but throughout the world, due to the coronavirus pandemic, which has pushed the world into a state of lockdown. The virus, which originated in the Chinese city of Wuhan, has infected around 3.76 million people worldwide and around 264000 deaths have been reported so far.

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