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News Release

Shanghai

Jones Lang LaSalle Assists with a Site Acquisition in Qingpu

First investment purchase by a major foreign industrial developer in China for 2009


Jones Lang LaSalle recently negotiated a transaction on behalf of an affiliate of AMB Property (China) Consulting Co., Ltd for a site acquisition in the Qingpu district. The transaction comprises a 87,100 sqm site consisting of an asset that upon completion of redevelopment will be 26,450 square meters and has land capable of supporting approximately 31,000 square meters of future development. It is also the first investment purchase by a major foreign industrial developer in China this year.

The west side of Shanghai serves as a catchment area for the majority of cargo that comes in from Zhejiang and Jiangsu Provinces, as well as goods that are exported out of Shanghai. The subject property is a two-minute drive from the A30 and A9 expressways, providing rapid access to the main highway system in East China. As one of the major manufacturing areas in Shanghai, Qingpu Industrial Zone serves as a desirable distribution location for the Greater Shanghai Area.

“The site is strategically located for logistics and distribution activity supporting domestic consumption within Shanghai, and throughout the East China region. Its highly-visible location along A30 enables future customers to reinforce their branding position in Shanghai,” said Thomas F. Marquis, managing director of AMB Property China. 

‘We are honoured to be involved in this transaction, as we have seen leading logistics developers seek opportunities to acquire existing manufacturing facilities for further upgrading to high-quality warehouses,’ said Stuart Ross, Head of Industrial for Jones Lang LaSalle, China. ‘This is due to the scarce amount of available land and high land prices in Shanghai,’ Ross added. Developers can purchase existing manufacturing facilities, most of which are in good locations, with terms more favourable than an outright purchase of raw land for development. Another advantage of renovating existing properties rather than building on raw land is the speed to market. Land acquisition and construction from scratch is a very time-intensive process. Acquiring and then renovating existing facilities is faster.

Stuart also added, ‘If developers see good opportunities arise, we can expect similar transactions to occur over the rest of 2009 as the need for regional distribution centres remains strong despite a slower pace of export growth.’