The online retail boom in China is fueling demand for storage spaces — and real estate investors should start thinking about putting their money in warehouses, said the founder and CEO of Baring Private Equity Asia, Jean Eric Salata.
Salata estimates that 98% of existing warehouses in China are “old stock,” and only around 2% are “modern warehousing.”
“It’s a question of not just adding capacity, it’s also about upgrading what’s there today, which is very outdated,” Salata said. “A rather safe way, I think, to invest in real estate in China is in the whole logistics and industrial distribution space.”
The demand for warehouses has been driven in part by the rise of e-commerce in China. A report by research firm eMarketer predicted China would be the world’s top e-commerce market in 2019, with sales…