Goldman Sachs grants $120 million pre-IPO loan to Chinese warehouse firm
American investment bank Goldman Sachs Group Inc has agreed to provide a $120 million pre-initial public offering loan to Shanghai-based warehouse developer e-Shang. e-Shang is co-founded by US private equity firm Warburg Pincus.
According to a report by Reuters, Warburg has also raised its total investment in e-Shang to $200 million. Warburg helped establish the Chinese warehouse firm in 2011 with two local entrepreneurs.
Warehouse investing is said to be on the rise in China. The sector is attracting private equity firms and property companies as the economy shifts to a consumption model and e-commerce drives demand for storage space, the report said.
e-Shang in a statement said that it intends to go public in the next few years. The Chinese warehouse developer has 1 million square meters of completed and ongoing projects, Reuters said.
e-Shang provides warehousing and logistics services across Shanghai, Beijing and Guangzhou, as well as in second-tier cities, the report said.