BPEA Real Estate raises $1.2b for China-based logistics platform

BPEA Real Estate, part of alternative investment giant Baring Private Equity Asia, has announced raising more than $1.2 billion in total equity commitment for its Chinese logistics platform, Forest Logistics.

BPEA Real Estate Fund II, which closed in 2018 with $1 billion in capital commitments, contributed part of the capital for Forest Logistics, according to an earlier announcement.

The platform, established by BPEA Real Estate along with Hank Hsu and Addy Chen in 2018, plans to provide international-standard logistics facilities in major Chinese cities to meet the country’s increasing demand.

The firm said Forest Logistics was formed amid a pick-up in online consumption, more organised domestic retail supply chains, and growth from third-party logistics players in China.

“While the recent developments in China may slow some sectors, we believe the drivers behind the long-term opportunity for logistics are uncorrelated to these short-term events and see further potential to invest in China’s long-term growth,” said BPEA Real Estate managing director Charles Lam.

Forest Logistics has already acquired 12 sites representing approximately one million square meters of gross leasable areas.

Several of these sites are fully operational, including a prime location at Beijing airport used as a logistics hub for the 2022 Beijing Olympics that was recently certified LEED Gold.

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According to the announcement, Forest Logistics will use the funds to scale the company and construct a network of more than 30 modern logistics properties across China.

BPEA Real Estate head Mark Fogle said the firm hopes to establish more logistics platforms in the coming years across Asia by leveraging its regional platform.

“We see many of the same attributes that initially attracted us to China across other Asian countries, especially the lack of modern stock and huge demand from e-commerce,” Fogle said.

BPEA has assets under management of $34 billion, including real estate strategies covering diversified pan-Asian real estate. The firm has over 210 employees located across nine offices in Beijing, Delhi, Hong Kong, Los Angeles, Mumbai, Singapore, Shanghai, Sydney, and Tokyo.

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