SHEIN Expands Lease in GLP's Largest Industrial Property in Brazil

The industrial property developer GLP has announced another lease agreement with Chinese retailer SHEIN. The e-commerce company, which already had over 80,000 square meters leased in GLP Guarulhos II, will now occupy a total of 216,000 square meters in the complex.

According to data from the SiiLA Market Analytics, GLP Guarulhos II is a Class A+ asset delivered in 2021 and located 18 km from São Paulo, near the Presidente Dutra and Ayrton Senna highways, the main access routes to the Rio de Janeiro-São Paulo axis, the country's largest consumer centers.

GLP stated that the development is undergoing expansion works to accommodate the retailer's entire operations. The completion of the works is scheduled for the second half of 2023, and according to the developer, GLP Guarulhos II will be the largest A+ logistics property in the market and for GLP in the country, with approximately 500,000 square meters.

Mauro Dias, President of GLP Brasil, says the company has been working to anticipate market trends to serve key players: "Being chosen by SHEIN at a time when the company announces major investments in Brazil confirms that we are on the right track in developing well-located and efficient logistics facilities that support the growth of our customers."

For the retailer, the partnership with GLP represents another advancement in their local investment strategy and the opportunity to enhance the shopping experience for consumers and improve delivery agility. In April, SHEIN announced a plan to make Brazil the most modern hub for textile production and exports in Latin America. To achieve this, the company is expected to establish partnerships with around 2,000 local manufacturers, aiming to generate 100,000 jobs in the next three years.

The recent initiatives by the Asian company were announced after a meeting with the Minister of Finance, Fernando Haddad, amidst the controversy surrounding the end of tax exemptions for imported products, as reported here on REsource. Last week, the expansion of Asian companies into the Brazilian commercial real estate market was also the subject of a news report.

Among the announced actions, there is also a planned investment of R$750 million in technology and training to support Brazilian manufacturers and increase competitiveness by updating production models to SHEIN's on-demand model. The marketplace model for local sellers, which began testing in the country in 2022, was also announced to meet Brazilian customers' demands for a wider variety of products and categories.