* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Sunday, August 3, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Technology

China Logistics Projects Achieving 7% Development Yields as Costs Fall 40%: MTD TV

June 12, 2024
in Technology
China Logistics Projects Achieving 7% Development Yields as Costs Fall 40%: MTD TV
Share on FacebookShare on Twitter

Land and construction prices in China are dropping at the same time that the evolution of the country’s e-commerce market is continuing to drive demand for warehouse space and a developing REIT sector is attracting more capital, according to senior executives from Forest Logistics Properties, ESR China, Gaw Capital and international law firm Stephenson Harwood.

China’s property slump has lowered development costs by as much as 40 percent, enabling investors to achieve development yields of 7 percent on a net operating income basis, Hank Hsu, co-founder and CEO of Forest Logistics Properties said in a panel discussion on Wednesday.

“I think it’s the golden time of development opportunities here,” said Hsu, who oversees the Shanghai-based logistics developer, operator and investment manager. “Land prices have come down 15 percent to 20 percent. Construction costs have come down another 20 percent due to less residential construction jobs for contractors. So our development costs have come down by 35 percent to 40 percent…we have more negotiating power with the government, and the construction costs account for 65 percent to 70 percent of the overall project cost.”

The panel discussion on logistics investment in mainland China, which was sponsored by Yardi, also included Luke Li, managing director of ESR China; Humbert Pang, managing principal and head of China for Gaw Capital; and Janice Yau Garton, a partner at Stephenson Harwood. The session, which was part of Mingtiandi’s 2024 APAC Logistics Forum, comes as China’s logistics sector is seeing growing interest from domestic institutional investors as the country’s pilot REIT (C-REIT) programme provides a new avenue of liquidity for eventual exits.

Southern China Boom

Despite moderating domestic consumption and slower expansion of online shopping, demand for warehouse space in mainland China has received a boost from the growth of cross-border e-commerce platforms like Shein and Temu, as well as from high-tech manufacturers such as electric vehicle makers.

“There will be more demand from e-commerce platforms that are able to offer product at a more competitive price to consumers, as well as some of the new formats of online sales, such as livestreaming retailers,” said Li, who oversees HKEX-listed ESR’s 40 million square metres of industrial properties in mainland China. “Besides e-commerce, we are seeing some new demand drivers, such as high end manufacturers, EV car parts and services, as well as renewable energy manufacturers. And of course, the biggest bright spot since last year is cross-border e-commerce.”

The “big four” cross-border e-commerce players – Shein, Temu, AliExpress and TikTok – will require 7 million square metres of space this year, according to Hsu, whose firm has developed or acquired 2.5 million square metres of logistics assets across China and has $2 billion in mainland assets under management.

Rental growth has remained stable in southern China, with cities like Guangzhou, Dongguan and Shenzhen serving as supply chain hubs for e-commerce players and high-tech manufacturers, while other regions continue to face headwinds as tenants seek cost savings amid China’s economic slowdown.

“There’s a lot of pressure and headwinds on rental growth prospects, even in tier 1 cities,” said Pang. “Of course, there are very good areas like southern China, where a handful of tenants are doing extremely well in cross-border trade. They are still paying good rent and they’re still in demand. But other than that, most of the logistics space owners are having a tough time negotiating with existing or new tenants.”

Despite challenging rental growth in areas outside of southern China, the panelists pointed to improving yields and supply dynamics in cities like Chengdu, Changsha, Wuhan and Suzhou as justifying continued investment.

Hsu’s projects in Chengdu and Changsha are currently 95 percent occupied, while Li sees a window of opportunity to acquire desirable land plots in Suzhou, with the local government willing to offer land for logistics and high end manufacturing at attractive prices amid the downturn.

C-REIT Gamechanger

With mainland China’s logistics assets standing out as a rare bright spot amid the country’s property slump, the sector’s stable returns and attractive yields have attracted increased investment from local insurers and other domestic institutions.

“The logistics market was an alternative investment for so many years, and now it’s very mainstream,” said Garton. “So it has really continued to perform, and is one of the few asset classes that has done really well over the last five years or so. So I haven’t seen a lot of distress in big box warehousing, cold storage, or logistics in general. I haven’t seen that amongst my clients so far.”

The sector’s appeal has also been boosted by China’s pilot REIT programme, which provides investors with a new avenue to monetise their investments. Since the debut of China’s first REITs in 2021, which included logistics trusts, mainland authorities have been promoting what are now known as C-REITs as a way to deepen the country’s property markets and create alternative financing channels for developers and fund managers.

Mainland-listed REITs are currently trading at 5 percent yields compared to 7 percent to 10 percent for their Hong Kong-listed counterparts, which provides owners of logistics assets a desirable channel to exit their position, according to Pang.

That view was echoed by Li, with ESR’s C-REIT – the AVIC ESR Warehouse Logistics Closed Infrastructure Securities Investment Fund – expected to complete preparations for a mainland listing this year.

“C-REITs are certainly a gamechanger for China’s logistics real estate sector,” said Li. “We are seeing insurers and local investors setting up pre-REIT funds and private REITs with the aim to exit to C-REITs. So, I think C-REITs complete the ecosystem of the local capital market for logistics assets. We have seen a higher level of interest from a lot of domestic insurers and many of them are actively evaluating opportunities. By and large, logistics is probably the most preferred asset type on investors’ minds for the past four years.”

More to Come

Mingtiandi’s APAC logistics forum continues on Thursday, 13 June with a look at the Japan and Korea markets featuring speakers from ESR, Seoul-based start-up Qube Industrial and the Netherlands’ APG Asset Management.

On Tuesday, 18 June the event series continues with a panel focused on logistics opportunities in Southeast Asia and India, featuring Jai Mirpuri, head of Southeast Asia for ESR; Souvik Mukherjee, head of logistics development for India with Mapletree Investments, and Fion Ng, chief operating officer with Vietnam’s BW Industrial.

The final session in the series on 20 June takes a look at Australian opportunities with Simon Sayers, head of development for ESR Australia; George Anastasiou, head of real estate for Australia with DWS; Nicholas Bradley, joint managing director at Hale Capital Partners and Benjamin Chow, head of real estate research for Asia at MSCI Real Assets.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : MingTiandi – https://www.mingtiandi.com/real-estate/events/china-logistics-projects-achieving-7-development-yields-as-costs-fall-40-mtd-tv/

Tags: ChinaLogisticstechnology
Previous Post

Regulator Rejects Evergrande Founder’s Appeal as EV Arm Risks Land Confiscation

Next Post

UEM Sunrise Selling Malaysia Data Centre Plots for $30M, Deal Linked to Singtel

Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

August 2, 2025
Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

August 2, 2025
Young minds explore science at NDSU summer research program – InForum

Young Minds Ignite Curiosity at NDSU Summer Science Research Program

August 2, 2025
PlayStation Preparing to Release More Games on Xbox – Report – PlayStation LifeStyle

PlayStation Gears Up to Launch Exciting New Games on Xbox

August 2, 2025
Lexington County hits a home run hosting the Diamond Youth Baseball World Series – WLTX

Lexington County Hits a Home Run Hosting the Diamond Youth Baseball World Series

August 2, 2025
Some rural Texans see THC as a lifeline for their health and economy – The Texas Tribune

How THC Is Revolutionizing Health and Sparking Economic Growth in Rural Texas

August 2, 2025
Fox Corporation Acquires One-Third Interest in Penske Entertainment – INDYCAR.com

Fox Corporation Makes Bold Move with Major Investment in Penske Entertainment, Powering INDYCAR’s Future

August 2, 2025
Minnesotans face health impacts as wildfire smoke lingers – kare11.com

Minnesotans face health impacts as wildfire smoke lingers – kare11.com

August 2, 2025
Trump announces sweeping new levies for scores of countries – as it happened – The Guardian

Trump announces sweeping new levies for scores of countries – as it happened – The Guardian

August 2, 2025
Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

August 2, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (751)
  • Economy (776)
  • Entertainment (21,653)
  • General (16,252)
  • Health (9,813)
  • Lifestyle (784)
  • News (22,149)
  • People (776)
  • Politics (785)
  • Science (15,989)
  • Sports (21,271)
  • Technology (15,753)
  • World (758)

Recent News

Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

Endemism shapes viral ecology and evolution in globally distributed hydrothermal vent ecosystems – Nature

August 2, 2025
Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

Scientists Finally Reveal the Hidden Trigger Behind Lightning Strikes

August 2, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version