ARA Asset Administration-backed logistics actual property group LOGOS Property is elevating $1.2 billion for a foray into Vietnam and South Korea, based on a prime government of the agency.
The Sydney-headquartered agency is in search of $400 million for a Vietnam car and one other $800 million for South Korea for its build-to-core technique.
The event was first reported by PERE on Thursday. Trent Iliffe, managing director and co-CEO of LOGOS, confirmed the plan to DealStreetAsia.
Up to now, the agency has secured capital from strategic buyers such because the Canada Pension Plan Funding Board (CPPIB), Ivanhoé Cambridge and Dutch property fund supervisor Bouwinvest in elevating funds for its ventures in China, Indonesia and Singapore.
“Vietnam got here on the worldwide stage about two years in the past. We have been first requested to return to Vietnam to assist one in every of our main buyer’s curiosity in Ho Chi Minh Metropolis. As we opened the door with different prospects, our dedication to arrange in Vietnam was firm because the wants of those corporations grew to become evident,” Iliffe mentioned in an electronic mail interplay.
The expansion potential of the Southeast Asian nation can also be pushed by market fundamentals, together with the commerce conflict, the decentralisation of the worldwide provide chain, in addition to progress within the e-commerce market, he mentioned.
LOGOS appointed Glenn Hughes, former director of capital tasks and infrastructure at PwC Vietnam, as its Vietnam nation head in January this 12 months.
In the meantime, Korea spells a chance for LOGOS as a result of other than ESR/Kendall Sq., “there are not any different worldwide or regional growth teams” within the nation, mentioned Iliffe.
“We have now numerous our prospects asking us to return and assist their progress in Korea and are excited by the longer term alternatives right here,” he added.
LOGOS will give attention to buying and creating belongings that assist the core logistics sectors of e-commerce, meals and chilly storage. “We might want to construct this product from the bottom as much as meet the wants of the trendy logistics sector necessities,” Iliffe revealed.
These two Asian markets have grow to be interesting to logistics actual property buyers previously couple of years. ESR Cayman lately invited CPPIB and Dutch pension fund APG to arrange one other $1 billion three way partnership to put money into Korea’s industrial properties.
In Vietnam, BW Industrial, a three way partnership between non-public fairness agency Warburg Pincus and native property developer Becamex IDC, claims to be the most important industrial platform within the nation with about $215 million in capital.
In the meantime, international logistics big GLP arrange store in Vietnam earlier this 12 months, with Kent Yang, its former China president, and Chih Cheung, a Li & Fung board member, as its founding companions, Mingtiandi reported.
Older gamers in Vietnam’s industrial actual property scene embrace VSIP, a three way partnership between Becamex and Singapore’s Sembcorp Growth, and abroad conglomerates who’ve huge investments within the nation.
Addressing competitors in sourcing offers, Iliffe mentioned, “There’ll all the time be robust competitors in any market, the worth is knowing buyer wants when it comes to location right now and sooner or later. The place doable, we like to accumulate land with buyer assist. We’re comfy on our capacity to ship in these markets.”
LOGOS may additionally take a look at Japan and Thailand as its subsequent enlargement targets, based on PERE.
The agency’s Korea and Vietnam enlargement technique comes on the heel of deployment of a $400-million Indonesia car final 12 months and the primary shut of its fourth China logistics enterprise at $800 million in April 2020.
Established in Australia in 2010 by founders John Marsh and Iliffe, LOGOS was acquired by ARA in March this 12 months to grow to be the latter’s unique platform for logistics belongings globally. By June, LOGOS had over 6 million sq. metres of property owned and underneath growth, with a accomplished worth of A$10 billion ($7.16 billion) throughout 20 ventures, together with the Singapore-listed ARA LOGOS Logistics Belief.