PepsiCo Signs 210,000 sqm Industrial Real Estate Lease at GLP Group's Shanghai Logistics Park

PepsiCo has agreed to occupy a 210,000-square-meter logistics facility at GLP China's Linfang Songjiang Logistics Park in Greater Shanghai, committing RMB 80 million to develop what the company describes as one of its most digitally advanced distribution centers globally, GLP Group announced May 7, 2026.

The industrial real estate deal marks a significant upgrade to PepsiCo's China supply chain infrastructure and underscores rising demand for automated warehouse real estate in the Yangtze River Delta.

Facility Design and Warehouse Real Estate Specifications

The 210,000-square-meter complex comprises two high-specification, multi-storey warehouses and will be operated in partnership with Huizhong Supply Chain, PepsiCo's third-party logistics provider. The facility is designed to accommodate approximately 40,000 storage units and integrates a suite of automation technologies, including four-way shuttle systems for high-density storage, automated guided vehicles (AGVs), and intelligent sorting systems engineered to enable 24/7 unmanned operations.

"Once completed, this smart logistics centre is expected to be among PepsiCo's most advanced facilities globally in terms of digitalisation and automation," said Li Youlin, Senior Vice President, Supply Chain, Asia Pacific and Greater China at PepsiCo. "With peak monthly handling capacity exceeding 10 million cases, it will set a benchmark for the deep integration of technology and sustainability within our supply chain operations."

Dong Jinyu, Chairman of Huizhong Supply Chain Group, said GLP provided support across site selection, planning, and execution. "This collaboration reflects our shared commitment to high industry standards and sustainable, intelligent supply chain operations," Dong said.

The facility is being built to LEED Gold certification standards and will feature rooftop solar photovoltaic systems, energy-efficient building materials, and rainwater recycling systems. GLP China describes the project as supporting low-carbon and resource-efficient operations.

Strategic Location in the Yangtze River Delta

GLP Linfang Songjiang Logistics Park occupies a position in southwest Shanghai with direct access to an extensive expressway network and proximity to the Shanghai–Suzhou–Huzhou high-speed railway. GLP describes the park as a key logistics hub connecting southwest Shanghai with the wider Yangtze River Delta region, supporting PepsiCo's regional distribution requirements for fast-moving consumer goods.

GLP Group's Industrial Real Estate Platform

GLP China, the domestic arm of GLP Group, manages a logistics and industrial portfolio totaling 50 million square meters under management as of December 31, 2025, including approximately 40 million square meters in operation across 70 cities. The platform serves more than 2,500 domestic consumption-focused customers. GLP also operates data center infrastructure, with 1.4 gigawatts of secured IT capacity and more than 1 gigawatt of renewable capacity under management.

The Songjiang lease reflects a broader pattern in China's FMCG sector, where consumer goods companies are investing in automated, high-efficiency logistics infrastructure to support omnichannel distribution, operational resilience, and sustainability goals.

Investment Context

The RMB 80 million investment represents PepsiCo's fit-out and technology deployment costs for the facility. No sale price, cap rate, or commercial real estate financing details were disclosed in connection with the lease transaction. GLP China retains ownership of the underlying industrial real estate asset as part of its operating portfolio.

The deal is structured as a long-term lease, with the specific lease term undisclosed. GLP China's full-lifecycle capabilities — spanning project development, asset management, and smart operations — are cited as central to the partnership structure alongside Huizhong Supply Chain's domestic logistics expertise.