e-Shang Redwood stalks $1bn Australian industrial portfolios

Private equity-backed Asian logistics player e-Shang Redwood is close to buying three portfolios of Australian industrial property worth almost $1 billion as it expands its platform into the local market.

The group e-Shang Redwood, formed by the merger of two of Asia’s top developers, e-Shang Cayman and the Redwood Group Asia, has lifted the quantum of property it is buying from the Goodman Group in an off-market play.

Redwood last year emerged as the lead contender for a portfolio of Goodman assets being sold off-market via CBRE and JLL as well as another collection of assets being sold by JPMorgan Asset Management through Colliers International and CBRE.

Pace grows: China’s New Hope shifts focus to Australian industrial assets

The initial Goodman portfolio spanned assets in Queensland, South Australia and Victoria. Most of the portfolio was around Melbourne with the Westlink Distribution Centre, the Federation Distribution Centre, the Boundary Distribution Centre, the Healey Industrial Estate and Woodlands Distribution Centre anchoring the offer.

In Queensland, the Crestmead Distribution Centre was included and in South Australia the Purling Distribution Centre was available.

Redwood was drawn by the portfolio’s spread and the offer of another 41,000sqm of expansion lands. Now the merged entity is targeting another Goodman portfolio offering similar metrics and growth potential.

The Federation Distribution Centre in Melbourne is among the portfolios being targets by e-Shang Redwood. Picture: Goodman Group.

The group is being advised by local firm Box Capital, but neither party would discuss the plans. E-Shang Redwood’s entry into markets along Australia’s eastern seaboard would shake up the market as it will be a long-term presence as an owner and developer of top grade facilities.

The group is already one of Asia’s top logistics real estate players with more 3.5 million square metres of projects owned and under development across China, Japan and South Korea, and capital and funds management offices in Hong Kong and Singapore.

Redwood last year emerged as the lead contender for a portfolio of Goodman assets being sold off-market

The combined group also has one of the largest development pipelines in each of the markets where it operates with a pipeline of about 8 million square metres.

The group would look to leverage its deep ties with global heavyweights like Amazon, DHL, JD.com, 1haodian, H&M, Carrefour, DB Schenker and Daimler as it takes on existing players like the listed Charter Hall, Dexus, Mirvac and Stockland.

The group sports blue-chip institutional capital partners such as APG, PGGM, CPPIB, Morgan Stanley and Goldman Sachs.

The new group last month confirmed it was seeking to grow in advance of a targeted IPO and observers said an Australian platform would round out the group’s holdings in rapidly-growing Asian markets.

This article originally appeared on www.theaustralian.com.au/property.