U.S. Developer Breaks Ground on Biggest Cold-Storage Warehouse in China
(SHANGHAI, CHINA) -- In the first U.S.-China cold storage development of its kind, New Jersey-based Preferred Freezer Services broke ground today on a multi-million-dollar, 280,000-square facility at Lingang Logistics Park in Shanghai.
After construction, the refrigerated warehouse will be the largest and most advanced single-story cold storage facility in China, according to the Shanghai Institute of Mechanical & Electrical Engineering Co., Ltd.
Jones Lang LaSalle's China Industrial team (NYSE: JLL) coordinated the project .
"This represents one of the largest build-to-suit transactions in the Shanghai region and marks a notable trading partnership between the U.S. and China," says John Carver, Executive Vice President of Jones Lang LaSalle.
"The facility is strategically located just minutes away from the 17-mile East Sea Bridge connecting the Lingang New Area in Shanghai to the recently opened Yangshan Deep Water Port."
In addition to representing PFS in its expansion throughout China, Jones Lang LaSalle is acting as global marketing partners for Lingang Group, a state-administered development company responsible for developing the nearly 30,000-acre Lingang Manufacturing and Logistics Zones.
Carver says Jones Lang LaSalle was engaged to advise and broker real estate transactions to help Lingang Group build a trade bridge between China and other countries.
"To assist PFS in the set up of its first refrigerated warehouse with modern design and innovative high technology in China, our industrial experts fully leveraged their local knowledge, resources and experience to support our port, airport and global infrastructure experts based in our Los Angeles office," notes Stuart Ross, head of China Industrial, Jones Lang LaSalle. "Together, we delivered a customized solution for PFS' unique needs,"
John Galiher, CEO of Newark, NJ-headquartered Preferred Freezer Services says the project marks his company's expansion into China.
"Once completed, the facility will be the largest in PFS' global network," says Galiher.
"This project will be the first of many leading-edge facilities that we have planned for China. Our expertise in cold storage warehouse operations, coupled with unsurpassed customer services, will no doubt provide an improved option for local as well as multinational food companies in the country."
Galiher says China has the world's fastest-growing consumer market for perishable food and pharmaceutical products, but its per capita refrigerated warehouse space is less than one-tenth of most developed countries.
"The demand for cold chain facilities with improved quality is enormous in China and with the growth of foreign capital in recent years, this presents investors with massive opportunities," he says.
Preferred Freezer Services, a 20-year-old developer, has worked with Dalian-based Yida Group to jointly invest in the development of the cold storage market in China
Established in 1984, Yida Group developed Dalian Software Park, the largest professional park in China, combining production, education and research with the largest number of Fortune 500 companies.