COMPANY DESCRIPTION
Shanghai Yupei Group Co., Ltd. (Yupei) develops, owns, and operates international quality warehousing and distribution properties in mainland China, primarily in the Yangtze River Delta near major transportation and commercial hubs. The Company’s current portfolio is the fifth largest in China and comprised of approximately 360,000 square meters located in Shanghai, Beijing, Chuzhou and Suzhou. Yupei has emerged as a leading domestic landlord within the logistics and warehousing real estate sector, focused on leasing space to high-quality tenants and third party logistics service providers (3PLs) such as Itochu and Bosch Siemens.

MARKET OVERVIEW
China’s warehousing and logistics property sector is well positioned for long-term growth, driven by expanding demand, government support, and a significant lack of modern supply. Favorable demographic and economic conditions, particularly from a growing middle class and expanding consumerism, are increasing demand for logistics facilities. Recognizing the importance of the logistics sector to China’s economic development, the National Development and Reform Commission has supported the industry since 2005. It is estimated that the total supply of logistics facilities in the United States is 14 times greater (by gross floor area per capita) than that of China. Additionally, it is estimated that only a small minority of existing logistics facilities are built to modern standards and will need replacement to meet growing demand and to support China’s urbanization.