China Logistics Property Holdings Co., Ltd ("CNLP" or the "Company", together with its subsidiaries, the "Group"; Stock code: 1589), a leading provider of logistics facilities in China, today announced that the Company and LaSalle Investment Management Asia Pte. Ltd. ("LaSalle") have entered into a cooperation framework agreement ("Agreement"), whereby the Company and a fund managed by LaSalle agreed in principle to establish a joint venture program, and subject to both parties' respective board and investment committee approvals, to invest up to US$300 million in operating logistics warehousing projects in China. The Company has also granted certain pre-emptive rights to LaSalle in relation to certain of its existing logistics assets and developments.
Under the Agreement, CNLP will invest up to US$90 million and be appointed to provide project and property management services to the logistics warehousing projects under the joint venture. This is a significant milestone for the Group to achieve revenue diversification, further position itself as a leading logistics facilities operator and transform into an asset-light model.
Mr. Pan Naiyue, Chief Executive Officer of CNLP, said, "Driven by rapid growth of e-commerce and domestic consumption in recent years, demand in the major logistics market has been persistently strong. Having world-class institutional property investor Lasalle join us as business partner is a testimony to the Group's robust business strategy. We are pleased to deepen our cooperation with LaSalle to strengthen each other's business development."
Mr. Cheuk Shun Wah, Chief Financial Officer of CNLP, said, "The cooperation with LaSalle will benefit the Group's long-term development, notably optimizing the capital structure and reducing the operational cost, which will further enhance the financial stability. The fund cooperation model helps accelerate the expansion of our logistics business, which allows us to seize market opportunities more nimbly and maximize profit for our shareholders and investors."