Recently, Yupei Group signed a cooperative agreement with strategic customers to select site for its dual logistics node cities in Henan and Anhui for the customization of high standard logistics facilities. The construction of the project will be started this year and expected to be completed and put into use in this year and next year. Both properties are high standard warehouses customized for strategic customers. After full communication and understanding of the customers' actual use needs, Yupei is responsible for the completion of the whole process, including site selection, land acquisition, planning and design, construction and later operation in order to meet the growing business needs of key partners themselves so as to help them improve their operation efficiency and optimize the network layout of their logistics. At the same time, the successful cooperation of the two projects has enriched the group's own asset portfolio and further expanded the network of efficient logistics facilities throughout the country.
Wu Guolin, chief operating officer of the Group, said “customized development is one of the important business models of Yupei, we have accumulated rich experience in this field. As early as in 2007, we successfully customized the largest logistics distribution center in east China at that time for Siemens in Chuzhou of Anhui. The realization of cooperation with our strategic customer who was in the leading position in its business field that time fully reflects the customer's high recognition of Yupei's professional competence and comprehensive strength in this field.”
Wu Guolin said further: “Yupei has been advocating common development with customers. Logistics industry in China, through the early development, has reached to a new stage, revealing a lot of new features and new trends, including the wide use of intelligent technology, the rapid growth of cold chain market demand and the further downward expansion of customer channels and so on. In the future, the company will, except for continuous development of China's first - and second-tier cities and further refinement of the development of standard facilities, actively pay attention to the new changes and trends in the industry, grasp market opportunities and help customers to achieve development.”
Project location: Luohe economic and technological development zone in Henan Province
Land area: 175 mu
Construction area: 60,000 square meters
Project location: Huaishang District, Bengbu City, Anhui Province
Land area: 160 mu
Construction area: 60,000 square meters
Professional perspective to help customers business development needs
Since the official launch of business in Shanghai in 2000, we have successfully customized a number of professional and high-standard logistics parks for Itochu logistics, Tingtong logistics, Siemens and other high-quality strategic customers in different regions of the country, perfectly met the business needs of various types of customers. After nearly 20 years of operation experience, we have developed different models for cooperative development: standard development mode, customized development mode, acquisition and leaseback mode etc., by using flexible and diversified capital use mode to meet the special needs of different types of customers. In the custom development process of these two new properties, Yupei Group has done a full and detailed preliminary research and preparation work. On the one hand, we fully investigated potential partners’ individual needs for site selection, park size, functional layout etc. Additionally, we actively maintained close communication with the local government, listened to their opinions and demonstrated the group’s determination and strength to help the local economy. It is the long-term efforts and coordination of the whole team that finally contributed to the multiple win-win results. Final customers enjoy the superior geographical location, perfectly matching the park warehouse design according to its own business model, as well as a reasonable and long-term rental price.
Business expanding downward, serving local characteristic industry
The efficient team of Yupei Group has been steadily operating many high-quality logistics assets in the first and second tier cities, while gradually discovering the new downward expansion demand brought by China's economic take-off. More and more types of customers are increasing the demand for quality logistics facilities and accelerating the elimination of inefficient old logistics facilities.This trend has been spreading to the third and fourth tier cities in recent years, bringing new opportunities to the logistics real estate development industry. Taking this opportunity, digging deep into customers’ new demand, Yupei Group, combining with the local competitive industries, giving play to the characteristics of centralized, large-scale and efficient logistics park network and promoting the development of local characteristic industries, has contributed to the development of local enterprises and social economy. For example, in the investigation of Luohe city, it is found that the food industry in this area has obvious characteristics, with the annual amount of processed food exceeding 5 million tons, among which the amount of processed meat products has accounted for 40% of that of the province, possessing more than 10 specialized food processing parks. And what this competitive industry brings is just the strong demand for cold chain storage. In combination with this feature, we positioned the project as an e-commerce cold chain industrial park in the early stage, and fully communicated with potential local customers and met their specific needs. It is just because we took serving the local characteristic industry as a new round of development strategy, we have received not only strong support from the local government, but also positive recognition from strategic customers.
The group has made steady progress facing greater opportunities and challenges
As one of the largest developers and operators in domestic logistics infrastructure, in China’s logistics portfolio (including those in construction and to be constructed), Yupei Group possesses more than 6,200,000 square meters and has formed the efficient logistics infrastructure network covering China’s major airport harbors, seaports, highways, processing base and consumption cities, aiming to help improve social overall logistics efficiency and reduce logistics cost of enterprises. The competition for the development of logistics facilities in China has intensified in recent years, however, with the continuous improvement of domestic consumption level and the further release of more regional economic development level, high-quality logistics facilities leasing will also meet more and more new needs, personalized needs and our group is also ready to greet the market with greater opportunities and challenges.