Discussion on the Development of Logistics Real Estate in China from the Acquisition of ProLogis fro

Recently, the Vanke Group, led by the United States ProLogis CEO Mei Zhiming sole proprietorship, Magnolia investment, high-capital, the Bank of China Investment Group, the Chinese consortium, to be 11.6 billion US dollars, equivalent to nearly 79 billion yuan in the price of Singapore acquisition Company ProLogis, not only alerted the logistics industry in China, if the smooth delivery will also be Asia's largest private equity acquisition case, ProLogis will also delisted from the Singapore Exchange. Vanke led the Chinese consortium why the commercial value of ProLogis, I try to read from the following aspects.

ProLogis' past life

ProLogis has become the largest logistics real estate developers. Official introduction shows that ProLogis manages 55 million square meters of global real estate and about $ 40 billion in investment funds, of which 57% of the assets in China, the rest are distributed in Japan, Brazil and the United States. ProLogis has invested and built 252 logistics parks in 38 major cities in China, forming a logistics and distribution network covering major airports, harbors, highways, processing bases and consumer cities in China with a total storage area of 28.7 million square meters, The logistics network covers nearly 90% of China's GDP. There is no doubt that ProLogis China and the global logistics industry play a pivotal role.

ProLogis has its inevitability. ProLogis began to enter China in 2003, especially in 2007 after the rapid development period, is to catch up with China's rapid economic expansion, the status of the logistics industry to enhance the gold period, while ProLogis also holds the world's largest logistics real estate investment funds, Most of the funds for overseas pension funds, equity investment funds, the pursuit of a relatively stable long-term return of about 5%, coupled with the RMB in a strong appreciation cycle, the return on capital far beyond the expected foreign capital.

In the superposition of dual factors, ProLogis has been rapid expansion and rapid growth, and developed into the Chinese market-based global second largest real estate developers. And these years, China's logistics real estate developers, commercial real estate developers subject to the cost of domestic financing constraints, the pursuit of the average rate of return over 10% of the project, and for the return rate of only 5% of the traditional storage logistics real estate investment enthusiasm is not strong. In the past years, to ProLogis, Abou, Jia Min, Yu Pei as the representative of the foreign logistics real estate business triumph, and domestic enterprises generally missed this round of real estate high-speed expansion period. ProLogis as the representative of the foreign logistics real estate enterprises have their own historical growth.

Vanke and other enterprises face transformation and development

Vanke as the most advanced domestic management model, the most perfect property management of China's residential real estate leader, has long been aimed at logistics real estate investment opportunities, in the foreseeable future, China's residential real estate growth and investment scale will be significantly slow, Assets as the representative of the Wanda Group in the rapid development of commercial real estate, Vanke is facing a number of years after the extension of commercial real estate development, holding real estate property has become one of the alternative models, in the past few years Vanke in commercial real estate, pension, logistics Real estate are involved, but the pace of expansion is much slower than the competitors. Shenzhen subway into the Vanke, in addition to the government to promote the administrative power, more attention is the Shenzhen Metro rely on a large number of subway stations for commercial development of land resources. Therefore, the acquisition of ProLogis, led by Vanke, is also based on long-term strategic considerations, through the holding of long-term stable return of real estate, accompanied by continuous value-added to achieve the transformation and development of enterprises.

ProLogis is very good at all times

As mentioned above, ProLogis's main stake is divided into overseas pension funds, equity investment funds, profitability is the natural characteristics of capital, with the end of last year's round of devaluation and the just-concluded national financial work conference released Capital of foreign irrational investment and acquisition management of the trend, ProLogis is facing how to withdraw and other problems.

And the Vanke led the Chinese consortium to take the dollar trading model, to meet the ProLogis equity capital out of the appeal, and the Chinese consortium's purchase price per share of about 3.38 Singapore dollars, much higher than the suspension before the 2.7 Singapore dollars, premium of about 25% , Compared with the weighted average price of the past 12 months is a premium of 81%, ProLogis's equity side is also the realization of the value of maximization, it can be said that the sale of the company's general departure time is very good.

ProLogis' commercial value geometry

Vanke led the consortium to buy ProLogis, but also fancy ProLogis commercial value has not been fully excavated. ProLogis currently operates nearly 30 million square meters of logistics real estate in China, but its business model is more traditional, mainly to the standardization of ordinary warehouse rental business. According to Prorose released 2017 annual report, ProLogis China's Treasury occupancy rate of 85%, the average rent of 1.06 yuan / square meter. Day, as a high standard of storage facilities suppliers, the rent level and the level of China's urban standard warehouse rent level, even lower than most of the second-tier cities in the high standard Treasury rent level. And the logistics mode of logistics-based logistics, Lin'an logistics rent level is far from the difference, biography, Lin An logistics of the transaction-style Treasury rent average of more than 2 yuan / square meter. Day, from the rent level, ProLogis's commercial value there is room for improvement.

In recent years, logistics network, large-scale, intensive development trend more and more obvious, the author is carrying out the "national logistics hub layout and construction planning research", to build a national logistics backbone hub network. Biochemical logistics rely on the capital market force, nearly two or three years in the country layout of dozens of highway ports, card line world and other enterprises are also building a national logistics backbone network. And ProLogis main logistics node coverage of the city has 90% of the country's GDP, both in the warehouse alone as the main business model, based on the supply chain through the use of information platform, grafting supply chain finance for customers to provide warehouse receipts Pledge, transaction settlement and other financial value-added services, embedded in the customer's production and marketing supply chain, expand regional distribution and urban distribution logistics organization function, its commercial value expansion space is huge. At the same time logistics park has a strong customer sticky, is a large number of transactions, logistics information, supply chain organization of the important entrance, the use of ProLogis logistics network to help enterprises to master the Internet economy traffic entrance. From this point of view, this may also be the value of the Chinese consortium of commercial value, if you can open up the chain of this value chain, ProLogis in the Chinese consortium and "Internet + logistics" innovation is expected to renew the new dynamic development The

China 's logistics real estate investment opportunities

Logistics real estate is a kind of commercial real estate, its essence and commercial real estate has a strong profitability, long investment recovery period, large-scale investment, business content, management requirements of higher characteristics. In China's urbanization has not yet completed, the rapid growth of domestic consumption in the context of consumption, especially by 2020 per capita GDP doubled in 2015, to a second-tier cities as the representative of the city logistics demand will maintain rapid growth.

At present, China's logistics real estate outstanding problem is a second-tier cities to ProLogis as the representative of the high standard storage facilities demand and supply of serious mismatch, on the overall demand for less than obvious. A second-tier cities, whether in residential, commercial real estate, or in the logistics real estate have greater demand for growth space, the overall investment risk is small, larger investment space, the next few years will become China's logistics real estate competition for the focus.

In short, the Chinese consortium acquisition of ProLogis is a milestone in the development of China's logistics real estate events, and its overseas acquisition of hotels, cultural and sports industry projects, it is better to target investment in the future business value of higher brand logistics real estate enterprises, Logistics real estate demand is more strong urban or regional investment, will become the future for a long time the main direction of China 's logistics real estate investment.