Top three mainland developer China Vanke had a busy month in July, spending more than RMB 25.4 billion to add 33 new real estate projects around the country as it pushed to expand its land bank via project acquisitions in Shanghai, Dongguan, Hangzhou and other locations.
Along with the developer’s purchase of land for residential, office and retail development, however, Vanke also expanded its logistics holdings in China by purchasing Swire Cold Chain Logistics from Hong Kong-listed Swire Pacific for just less than RMB 2 billion ($291 million).
With the RMB 1.998 billion acquisition of Swire’s set of refrigerated shipping facilities, Vanke, which had already begun establishing a cold chain division of its logistics business, vaults into the ranks of China’s 10 largest temperature-controlled storage providers.
Vanke Adds Swire Client Lists to New Business
While Swire’s attempt to make some hot profit from providing refrigerated logistics services to companies shipping fresh food, pharmaceuticals and other perishables is understood to have brought disappointing results, Vanke leaders indicated that by combining Swire’s facilities, and the company’s existing client list, with its own logistics holdings, the company is enthusiastic about becoming one of China’s leading cold chain service providers.
Previous announcements by Swire Cold Chain Logistics have highlighted its work handling New Zealand fruit brand Zespri’s shipments of kiwi fruit in China, as well as receiving an award for its services from New Zealand’s Fonterra dairy.
At the event, Vanke officials pointed out that the logistics acquisition will enhance the company’s ability to serve first-tier markets in China, along with core port cities, including delivering one-stop warehousing and distribution service, according to a statement by the company . . . .