Hongyi Real Estate's Infrastructure Fund has strategically invested in the Jiuzhoutong Pharmaceutical Storage and Logistics REITs, seeing significant long-term investment value in China's growing pharmaceutical logistics sector.

Target Information

The target of this investment deal is the Jiuzhoutong Pharmaceutical Storage and Logistics REITs, which officially launched its listing on the Shanghai Stock Exchange on February 27, 2025, under the stock code 508084.SH. This REIT comprises six modern pharmaceutical storage and logistics facilities located in the Dongxihu District of Wuhan. With a total construction area of 172,400 square meters, it positions itself as a national central warehouse, responsible for the nationwide allocation of medical products traded by Jiuzhoutong Group, as well as stocking and distribution within Hubei Province.

Industry Overview

In recent years, China's pharmaceutical logistics sector has seen rapid growth, largely driven by an expansive healthcare market and increasing demand for pharmaceutical products. Jiuzhoutong Group, the country's largest privately-owned pharmaceutical distribution enterprise, operates a vast pharmaceutical supply chain infrastructure, featuring 141 warehouses totaling over 4.3 million square meters, including 2.9 million square meters of GSP-compliant warehouses. Their cold storage capacity stands at 11.51 million cubic meters, allowing them to handle up to 16.6 million boxes of pharmaceuticals.

The ongoing wave of healthcare reforms and a push towards efficient logistics in pharmaceutical distribution have significantly enhanced market dynamics. The ind