Asian Growth Properties and the Redwood Group to Form China Logistics Real Estate Platform through Joint Venture: SGP Logistics

SGP Logistics will be a developer, investor and service provider for the occupiers of distribution, logistics and light industrial facilities, entering into or expanding within China.

Hong Kong, 19th January, 2011 – SEA Group subsidiary, Asian Growth Properties (AGP) and The Redwood Group (TRG) today announced a joint venture to develop, invest and manage logistics real estate in the People’s Republic of China (PRC).  

SGP (Sino Growth Properties)-Logistics, Ltd. will provide a professional platform of distribution, logistics and light manufacturing real estate facilities in selected high growth PRC markets. The Chinese industrial real estate market, currently greatly under supplied and under serviced, is expected to grow 8-9 times in size over the next decade (estimates by Jones Lang LaSalle).  

SGP will leverage AGP’s local market knowledge and China development experience (directly and through its affiliates) together with TRG’s international distribution and logistics real estate development experience and global client relationships.

SEA Group, AGP has operated in many of China’s largest cities (via its sponsors) for the better part of half a century; during this time SEA Group, AGP has completed numerous investments and land mark developments in China. The senior officers of TRG led the expansion into Asia of both ProLogis and then AMB Property Corporation, creating their first Asian platforms (in 1999 and 2003 respectively). The founders of TRG have executed more than USD 3 billion of logistics real estate investments in Asia, and over 4 million m2 of developments and acquisitions internationally, providing high quality distribution space for some of the largest end users and logistics service providers operating both within Asia and globally.

The joint venture has a target to invest several hundred million USD equivalent directly or through its institutional investor partners over the next years focusing on selected high-growth metropolitan areas of the PRC. Investments will be driven primarily by customer demand and need for modern facilities delivering the quality specifications of efficiency and through-put demanded by today’s leading logistics operators, retailers and light manufacturers.

David Runciman, (former Head of CBRE Asia, Executive Director of AGP, and Chairman of SGP) said: "We are pleased to partner with The Redwood Group, the principals of which I have known for 10 years and have watched as they have executed some of the highest quality and value distribution real estate developments and investments in Asia. This JV allows us to diversify our operations in China into the exciting and high-growth logistics real estate market with a world-class partner and product expert."

Charles de Portes and Stuart Gibson (President and CEO of TRG respectively and members of the Board of SGP) issued a joint statement: “China, the fastest growing and most dynamic economy globally, is experiencing an under-supply of efficient, high quality distribution facilities to keep pace with the tremendous and growing demand. Improving the efficiency and quality of such air, sea, land and rail cargo distribution facilities will contribute directly to improving the supply chain and global competitiveness of logistics in the country. This in turn benefits not only international and domestic firms tied most directly to the rapid export and import growth in China or to vibrant domestic supply-chains, but contributes as well to the efficiency of the economy as a whole. We are extremely excited about moving forward in partnership with AGP, a strong, experienced and long-standing player in the China real estate market with a reputation for first rate developments in some of the largest metropolitan areas.”

About Asian Growth Properties:  

As a subsidiary of SEA Group, Asian Growth Properties Limited ("AGP") and its subsidiaries, carry on business as an investor and developer of commercial office, retail and residential properties in Hong Kong and mainland China. The company both owns and develops commercial and residential schemes in the PRC and has a long term track record of proven development experience in China. AGP's shares have been admitted for trading on the AIM market of the London Stock Exchange since 16 January 2006. AGP, in its present form was incorporated in February 2004. 

For further information about AGP, please visit: http://www.asiangrowth.com

Contact for AGP: Edmon Fung e-mail: edmonfung@sgp-logistics.com  

About The Redwood Group:  

The Redwood Group, founded in August 2006 by Charles de Portes and Stuart Gibson is an investor in and manager of real estate with top global institutional and governmental investors, particularly in the largest metropolitan areas of Asia. The senior executives of Redwood have in combination developed, acquired and managed over 3 billion USD of distribution space globally, in seven countries totalling over 4 million m2.  

Additional information about Redwood may be found at: http://www.redwoodgroup.com

Contacts for The Redwood Group Ltd: Corporate Media Relations: Emma Larsson e-mail: elarsson@redwoodgroup.com