Tokyo-based property, banking and investment firm New City Corp said yesterday it had bought a major logistics facility in Shanghai from Waigaoqiao Logistics Corp for an undisclosed amount.

 

The firm said the acquisition, located in Waigaoqiao Bonded Logistics Park, is one of the largest modern facilities in China. New City said it is looking for further merger and acquisition opportunities in the Pacific Rim.

 

China's logistics sector, which is expected to grow 30 percent annually over the next three years, has seen an influx of foreign investors seeking high quality facilities.

 

New City, a fully integrated Pacific Rim operation with offices in Osaka, Seoul, Shanghai, Singapore, Sydney and San Francisco, is mainly engaged in investment, development and asset management businesses.

 

It set up its first China office in Shanghai last month and plans to develop residences, including both apartments and condominiums, in China, focusing on prime real estate in secondary cities with a significant port.

 

"We think there are a lot of opportunities to develop a state-of-the-art logistics business in China," said Christopher E. O'Brien, executive officer and executive vice-president of the firm's international operations, yesterday.

 

"Our first step in the overall strategy in China is to build the logistics business throughout Shanghai as well as the Yangtze River Delta region," he said.

 

The company also said yesterday that it is looking for logistics investment opportunities in the Pearl River Delta region and the Circum-Bohai Economic Ring.

 

(China Daily February 2, 2007)