HONG KONG, Aug. 22, 2018 /PRNewswire/ -- China Logistics Property Holdings Co., Ltd ("CNLP" or the "Company", together with its subsidiaries, the "Group"; Stock code: 1589), a leading provider of logistics facilities in China, today announced that the Company and LaSalle Investment Management Asia Pte. Ltd. ("LaSalle") have entered into a cooperation framework agreement ("Agreement"), whereby the Company and a fund managed by LaSalle agreed in principle to establish a joint venture program, and subject to both parties' respective board and investment committee approvals, to invest up to US$300 million in operating logistics warehousing projects in China. The Company has also granted certain pre-emptive rights to LaSalle in relation to certain of its existing logistics assets and developments.
Under the Agreement, CNLP will invest up to US$90 million and be appointed to provide project and property management services to the logistics warehousing projects under the joint venture. This is a significant milestone for the Group to achieve revenue diversification, further position itself as a leading logistics facilities operator and transform into an asset-light model.
Mr. Pan Naiyue, Chief Executive Officer of CNLP, said, "Driven by rapid growth of e-commerce and domestic consumption in recent years, demand in the major logistics market has been persistently strong. Having world-class institutional property investor Lasalle join us as business partner is a testimony to the Group's robust business strategy. We are pleased to deepen our cooperation with LaSalle to strengthen each other's business development."
Mr. Cheuk Shun Wah, Chief Financial Officer of CNLP, said, "The cooperation with LaSalle will benefit the Group's long-term development, notably optimizing the capital structure and reducing the operational cost, which will further enhance the financial stability. The fund cooperation model helps accelerate the expansion of our logistics business, which allows us to seize market opportunities more nimbly and maximize profit for our shareholders and investors."
About China Logistics Property Holdings Co., Ltd
CNLP was one of the early entrants and pure-players in China's logistics facilities market, with major shareholders including RRJ Capital, JD and Sino-Ocean. CNLP currently offers three types of logistics facilities: standardized logistics facilities, BTS logistics facilities and sale-and-leaseback logistics facilities, to fulfill specific needs of the tenants. Since 2003, the Group has participated in the development, operations and management of premium logistics facilities. With 15 years' experience, the Group has developed a highly effective and return driven business model. As of 31 December 2017, its prime logistics facilities portfolio reached 3.1 million sq.m., with 130 logistics facilities operating in 27 logistics parks, located in logistics hubs in 14 provinces and centrally administered municipalities. The Group's extensive geographic reach and premium logistics facilities create a strong "network effect" that allows tenants to expand across its logistics facilities network as their businesses grow. For further information about CNLP, please visit the Company's website at http://www.cnlpholdings.com/.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers with approximately $59.0 billion of private and public equity and private debt investments under management as of 30 June 2018. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open-ended and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Inc. (NYSE: JLL), one of the world's largest real estate companies.
