Denver-based ProLogis has broken ground on industrial projects near Shanghai Hongqiao International Airport and at Yantian Port in Shenzhen.
In Shanghai, the developer is constructing two inventory buildings comprising 920,000 square feet of space at ProLogis Park Hongqiao West near Shanghai Hongqiao International Airport. ProLogis announced its acquisition earlier this year of land and two manufacturing facilities at the park, which it plans to convert to distribution centers. Upon completion, the park will total five facilities representing 1.8 million square feet. ProLogis is investing approximately $52 million (€36 million) in the developments.
Another project, at Shenzhen’s Yantian Port—the city’s major seaport—ProLogis has begun the first phase of development on ProLogis Park Yantian. In partnership with Yantian Port Group, it is building two, three-story export bonded facilities totaling 751,000 square feet, with total investment of $48 million.
“Industrial warehouse companies in China with a strong presence near major modes of transit and trade possess a significant competitive advantage, as do the customers they serve at those locations,” Ming Mei, president of China operations at ProLogis, said in a statement. “Furthering our leading airport- and seaport-related position is a central aspect of ProLogis' development strategy in China,” Mei added.
The US-based firm entered China in 2004. At the end of the third quarter this year, ProLogis had 15.5 million square feet of property in operation and under development in the country.