TCT – BT

TCT’s Beijing Logistics Park up for sale

TREASURY China Trust’s (TCT) development property, Beijing Logistics Park, has been placed on the market for sale, its trustee manager, Treasury Holdings Real Estate Pte Ltd, said yesterday.

This follows the achievement of a 100 per cent leasing pre-commitment for the property, which is scheduled for completion in April 2012.

China’s largest online retail platform, Taobao, has entered into a three-year lease of the property for a total lettable area of 65,083 sqm. It will be established as Taobao’s central distribution hub for north-east China.

The remaining 8,579 sq m will be occupied by Shun Feng Express, a logistics provider servicing domestic and international networks, committed through a three-year lease expiring in June 2015.

TCT said both leases exceed the rental established for the property and will provide in excess of 30 million yuan (S$6 million) of annual revenue.

‘It has become a highly specialised industry, and in this context given TCT’s stated focus in the short to medium term on China’s burgeoning retail sector, it is appropriate that this property be marketed for sale and … we remain confident of a positive outcome for this investment,’ said Richard David, CEO of TCT.

The 75,028 sq m logistics project forms part of the Beijing Airport Logistics Park.

TCT units rose half a cent to close trading at $1.315 apiece yesterday.