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OKH Global signs strategic cooperation agreement with Ping An to develop logistics and warehousing facilities in China

Published 02 February 2018

OKH Global, along with its subsidiaries, has entered into a strategic cooperation agreement with Ping An Industrial and Logistics to develop and manage a network of quality logistics and warehousing facilities in China.

Ping An Industrial and Logistics is a key channel for Ping An Group's insurance fund investments and carries out effective investments in the field of logistics and warehousing.

In addition, Ping An Industrial and Logistics creates value by professionally providing continuous and stable value-added services for the insurance funds of Ping An Group, creating a modern and high-quality warehousing and logistics platform for Ping An Group to serve Ping An Group’s prestigious logistics customers through logistics real estate development and operations, as well as providing storage, financial leasing, insurance, factoring and other comprehensive financial services.

Under the Agreement, OKH Global and its associated company, Pan Asia Logistics Investments Holdings Pte. Ltd. will provide the expertise in the design, development, build-to-suit, leasing, asset management expertise and client network, while Ping An Industrial and Logistics will offer its real estate resources and asset management expertise, as well as provide integrated financial services such as insurance, finance leasing, cargo vehicle insurance and supply chain financing for tenants of these logistics and warehousing facilities.

With the Agreement, it is expected that both parties can combine their respective resource advantages and business characteristics to establish a close, collaborative long-term strategic partnership that offers more value propositions to the end users of the logistics and warehousing facilities in China.

In July 2013, the Group established a joint venture with Pan Asia Logistics Singapore Pte. Ltd. to develop, own and manage logistics properties in Asia and since then, the joint venture has grown progressively with an expanding portfolio of logistics properties in Singapore, Malaysia and Korea.

Notably, these logistics properties are leased out on a long-term tenure to MNCs such as Mercedes-Benz, BMW, Volkswagen, among others. The joint venture is actively pursuing new growth opportunities in Southeast Asia, Japan and China.

The rise of e-commerce has disrupted the supply chains of the Chinese retail industry while increasing consumer spending has led to higher car sales and ownership, increasing the demand for high quality logistics and warehousing facilities in China.

It is expected that China’s logistics sector will continue to offer long-term opportunities as more supply chain networks and transportation infrastructure are being built.

Source: Company Press Release