Canada's Ivanhoe invests in Chinese warehouses

Mon Jun 29, 2015 12:39pm EDT
 
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By Allison Lampert

MONTREAL, June 29 (Reuters) - The real estate arm of Canada's second-largest pension fund said on Monday it will invest up to $180 million in Chinese warehouse properties, joining other institutional investors that are seeking to profit from China's burgeoning e-commerce sector.

Ivanhoe Cambridge, part of the C$225.9 billion ($182.49 billion) Caisse de depot et Placement du Quebec fund, said it has launched a venture with U.S. real estate investor CBRE Global Investments to invest in LOGOS China Logistics Club, which owns and develops warehouse properties in hubs serving large Chinese cities.

The commitment made by Ivanhoe and its partners will allow LOGOS to make warehousing investments totaling up to $400 million, it said.

The investment supports Ivanhoe's plan to increase its exposure to the logistics sector in markets such as Shanghai and Guangzhou, Rita-Rose Gagné, Ivanhoe's executive vice president, growth markets, said in a statement.

The Caisse joins Singapore sovereign wealth fund GIC and the Canada Pension Plan Investment Board in targeting China's growing, yet fragmented logistics market.

China's aging warehouses are expected to require billions of dollars pf investment in the coming years to cope with a surge in e-commerce. (here)

($1=$1.24 Canadian) (Editing by Jeffrey Hodgson; and Peter Galloway)