ProLogis, Chinese partner to develop distribution park in Shanghai

ProLogis, Chinese partner to develop distribution park in Shanghai    ProLogis and Shanghai Lingang Economic Development Group Co. Ltd. have signed a 50-50 equity joint venture agreement to develop a 768-acre logistics park in Lingang New City, Shanghai.
   “Lingang New City is planned by the Shanghai municipal government to support Shanghai Yangshan international deepwater port (Yangshan), which is expected to be the world’s largest port upon its completion,” ProLogis said.
   The first phase of ProLogis Park Lingang will comprise eight facilities totaling nearly 1.1 million square feet. Ultimately, the park could support 10-15 million square feet of distribution space. ProLogis will invest $14.9 million, or half of the total costs, in this initial phase of development.
   First phase construction will begin in the second quarter and its completion is expected in the fourth quarter. ProLogis said this would be at about the same time the first phase of development of Yangshan port is scheduled to be completed.
   ProLogis will be the exclusive developer of distribution facilities in the park and will have the first right to partner with Lingang group on future logistics parks in Lingang New City.
   The Shanghai government is planning to spend about $12 billion (RMB100 billion) to develop Yangshan port into a port that eventually will have more than 50 berths and an annual capacity of 25 million TEUs.
   ProLogis Park Lingang will be located adjacent to the Lingang expressway, which leads from Yangshan port to Shanghai’s central business district and the rest of China.