Canadian fund, LOGOS in second Indonesian logistics JV to deliver US$1 bln facilities

KUALA LUMPUR, Jan 4 (The Star/ANN): Canada Pension Plan Investment Board (CPP Investments) and regional logistics real estate specialist LOGOS announced on Jan 4 the establishment of a new Indonesia venture for the development of modern logistics facilities in Greater Jakarta, according to a joint statement from both companies. CPP Investments said it will invest US£200 million into the joint venture, to develop a diversified portfolio of facilities targeted at third party logistics (3PL), data centre and industrial tenants. "One of the key investment themes for CPP Investments has been Asia's growing middle class and domestic consumption, " said Jimmy Phua, managing director and head of real estate investments, Asia, CPP Investments.

"The growth in Indonesia's e-commerce market has driven the demand for modern logistics facilities. We are pleased to be furthering our partnership with LOGOS and strengthening our position in Indonesia's logistics market, " he added. This is the second joint venture between CPP Investments and LOGOS in Indonesia, with the first launched in 2017 in partnership with another international investor to acquire modern logistics properties in this market.

The initial venture includes a number of logistics properties: Metrolink Logistics Hub, Cikarang Logistics Park, Cibitung Logistics Hub and Cileungsi Distribution Centre. "We are seeing growing demand from both multi-national and domestic customers for high-quality logistics space in Indonesia, which is underpinned by the region's economic drivers of ecommerce, manufacturing and diversification to decentralised supply chains, " said Stephen Hawkins, LOGOS' Managing Director, in the statement. "Through both ventures, we will deliver up to US£1 billion of high-quality logistics facilities to this market over the coming years."

LOGOS said it has identified a strong pipeline of opportunities for this new venture and will look to execute on this over the next one year. LOGOS' Asia Pacific portfolio comprises 100 logistics estates across nine countries with assets under management of US£10.2 billion, according to the statement. It is a logistics specialist with operations across Australia, China, Singapore, Indonesia, Malaysia, Vietnam, India and New Zealand.

CPP Investments is an investment management organization that invests in the world for more than 20 million contributors and beneficiaries of the Canada Pension Plan.

As at September 30,2020, the Fund totalled C£456.7 billion.

You may also like...