Eversheds Sutherland HK advises NWS Holdings Limited on acquisition of premium China logistics portfolio

Eversheds Sutherland’s Corporate team in Hong Kong has advised NWS Holdings Limited (NWS) on its acquisition of a portfolio of six premium logistics properties in Chengdu and Wuhan. The assets were acquired from Goodman China Logistics Partnership, an industrial and warehousing property fund managed by Goodman Group, for RMB2.29 billion (~USD340 million).

The Eversheds Sutherland team also advised on the formation of a joint venture operating company to manage and operate the portfolio and future assets.  

This transaction marks a milestone in NWS’s strategic expansion plan in the logistics segment. The gross leasable area of NWS’s logistics properties will doubled to over 11 million sq. ft., following the transaction. The portfolio will bring an immediate contribution to the cash flow and financial performance of NWS.

NWS will partner with Goodman Group to explore further collaboration opportunities in Mainland China.

The Eversheds Sutherland team was led by Partner Dickson Ng, and he was supported by Partner Amy Yu, Associates Alvin So and Loretta Lo and Trainee Chevy Mak.

Gilbert Ho, Chief Operating Officer and Executive Director of NWS, commented:

“The logistics industry offers excellent prospects, and in recent years, NWS has been proactively building a unique logistics ecosystem to seize its tremendous growth potential. The acquisition is in line with NWS’ investment strategy, which is targeting high-quality logistics assets that generate strong cash flows and solid returns and create synergies with NWS’ existing investments. It also marks a milestone in our strategic expansion plan in the logistics segment by partnering with Goodman to explore collaboration opportunities in Mainland China. We thank the Eversheds Sutherland team for their professional support and extra dedication and efforts to deliver both the legal and commercial objectives of NWS on this transaction.”

Dickson Ng, Partner, commented:

“We are absolutely delighted to advise NWS on this strategic and important acquisition in the logistics property sector. The sector is attracting much investor attention given the demand for supply chain management and logistics arising from consumers’ greater reliance on e-commerce during the coronavirus pandemic. I would like to thank NWS for entrusting us to be their adviser on this exciting opportunity as well as the project teams for their dedication in ensuring a successful signing. We look forward to working with NWS again on their future strategic transactions.”

Stephen Mok, Head of Corporate Asia and New World Group Client Partner, commented:

“NWS is one of Hong Kong’s most significant companies and I would like to thank NWS for appointing us to act on this transaction which will facilitate NWS to gain a major footprint in one of the world’s most sought-after logistics market. We look forward to furthering our collaboration with NWS on their future projects as they continue to grow.”

NWS Holdings Limited (Hong Kong Stock Code: 659), the diversified industries flagship of New World Development Company Limited, invests and operates a wide range of businesses predominantly in Hong Kong and Mainland China. Its core business includes toll roads, commercial aircraft leasing, construction and insurance, as well as managing a strategic portfolio spanning from the logistics to facilities management sectors.

Goodman Group is a global property group which owns, develops and manages industrial properties in 14 countries across Asia Pacific, Europe and the US. Goodman China Logistics Partnership, a property fund established in 2009, aims to invest in high-quality logistics properties across Mainland China, with a development-led strategy centred on major gateway cities.