On October 9, New City filed for bankruptcy with liabilities of US$ 1.1 billion because it couldn't refinance existing loans or raise funds to pay for properties it had committed to buy. This was Japan's first real estate investment trust to fail. New City acquired a 250,000 sqm two-storey warehouse in the Bonded Logistics Park (BLP) in Waigaoqiao, space which is still un-leased for its most part.

On December 23, debt-burdened Prologis agreed to sell off all of its operations in China to GIC Real Estate, an investment unit of the Government of Singapore for US$ 1.3 billion. The assets in China being sold off include 20.7 million square feet of completed properties, an interest in five China JVs and one property fund, a retail joint venture with a book value of $53 million; and 713 acres of land with a carrying value of $213 million. Except for some cities, most of the 60 parks operated in China are still struggling to find tenants.

Come and attend the next Logistics Real Estate Luncheon to be held on February 11, 2009 in Shanghai. This must attend discussion is just around the corner and the rumors surrounding Prologis and New City are heating up... What will happen to the BLP warehouse? who will be next? who is buying what? what are Jeffrey Schwartz and Ming Mei up to?

The workgroup also aims to provide a platform for property owners, developers and brokers involved in industrial and logistics projects to exchange ideas on how to advance the development of modern industrial property in China.