Shanghai-based PGC Capital and Salford-based McCafferty Asset Management Group have signed a strategic partnership agreement to jointly launch a UK Logistics Warehouse Investment Scheme.
The move comes just two months after Chinese megaretailer Alibaba signed up for its first major UK depot. Alibaba took 240,000 sq ft at Prologis’ 4XP site, Dunstable. The warehouse will be operational by Christmas. In China Alibaba’s logistics partner, Cainiao, is growing into a 54m sq ft portfolio.
PGC Capital, a private equity fund, will start raising capital from Chinese institutions and individual investors who are looking for overseas investment opportunities. It will be mainly used to invest in exceptional UK logistics and warehouse projects that will provide a steady return on investments.
The second phase of the Scheme is also being planned, which will extend to institutional and individual investors in another five countries, including the UK, Israel, Germany, South Africa and Switzerland.
The key driver behind the strategic collaboration derives from increasing demand by Chinese investors to see stable returns from manageable-risk investment targets around the world in the next 3-5 years.
The warehouse projects of the first phase of the Scheme will be operated and managed by McCafferty Group.