GAZELEY Ltd, a leading European logistics space developer, announced yesterday in Shanghai it plans to open more than 100,000 square meters of warehousing next year in China.
"The 100,000-square-meter warehousing spaces scheduled to be delivered next year include projects in Kunshan, Nanjing, Jiaxing and the second phase of our Tianjing project, a distribution center for Wal-Mart in North China," said Arnaud Sautel, a senior development manager for Gazeley's China operation.
"We will grow our business as fast as we can since demand for warehousing solutions from both multinational companies and domestic enterprises has been very strong in the country."
In September, the UK-based company, a wholly-owned subsidiary of US retail giant Wal-Mart, said it expects to invest as much as US$1 billion in the China market over the next few years.
It's now making plans for warehousing projects in the Yangtze River Delta, Pearl River Delta, and Bohai Rim areas as well as China's west.
Gazeley also said it may acquire new land plots in cities including Shanghai, Guangzhou, Chengdu, Beijing and Ningbo.
Undeterred by the rapidly rising cost of industrial land, global developers are accelerating their growth in China, fueled by an average 30-percent growth in the logistics sector.
Also yesterday, ProLogis, the world's largest developer, owner and manager of distribution facilities, kicked off a three-phase, 300,000-square-meter project in Shenzhen, southern Guangdong Province.
ProLogis has nearly 50 projects in 19 Chinese cities, and plans to increase its China portfolio to 1.5 million square meters by the end of this year.