The newly combined entity will operate under the Gaolu brand in mainland China, while the Black Kite brand will be retained for future offshore business.

Black Kite's portfolio includes seven logistics properties located in various regions across eastern and northern China.

Hillhouse's recent expansions also include significant investments across Asia, including Japan, India, and Singapore, alongside a $672 million funding round for GDS International.

Hillhouse Investment is enhancing its logistics operations in China through the merger of Black Kite Property's assets and management into Gaolu Group's warehouse division.

This merger became effective on October 11, 2023, with full integration anticipated to be completed within the current quarter.

The merger comes in response to a report indicating a 16% decline in trades of manufacturing, logistics, and data center assets over the past year.

While the financial terms of the merger have not been disclosed, it is expected to create significant scale and investment opportunities for both companies.

As a result of this merger, Gaolu Group will manage 30 projects totaling a floor area of 3.1 million square meters, or approximately 33.4 million square feet.

Gaolu Group was founded by Hillhouse in 2021, while Black Kite was established in 2019 by Richard Brooks, who has extensive experience in logistics and property management.

This merger is viewed as a key milestone for both companies, enabling them to leverage each other's strengths and enhance service delivery to clients.

Following the merger, Richard Brooks will take on the role of chief operating officer at Gaolu, where he will oversee property development and management.