The Canada Pension Plan Investment Board is investing alongside Ivanhoé Cambridge with real estate logistics specialist LOGOS to develop and acquire modern logistics facilities in Singapore and Indonesia.
In Singapore, CPPIB will initially commit S$200 million for an approximate 48 per cent stake in LOGOS Singapore Logistics Venture, which will be seeded by two fully-leased existing multi-storey logistics warehouse facilities as well as one development opportunity.
In Indonesia, CPPIB will initially commit US$100 million in equity for an approximate 48 per cent stake in LOGOS Indonesia Logistics Venture, which has an identified strong pipeline of development opportunities in Greater Jakarta.
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“The logistics sector in southeast Asia continues to grow as a result of the burgeoning middle class and the rise of e-commerce, and presents an excellent opportunity for a long-term investor like CPPIB,” said Jimmy Phua, managing director and head of real estate investments for Asia at the CPPIB.
“We are looking forward to making our first direct real estate investments in Singapore and Indonesia through well-established, like-minded partners like LOGOS and Ivanhoé Cambridge.”
CPPIB and Ivanhoé Cambridge will be equal partners in both joint ventures, with LOGOS, as the operating partner, holding the remaining stake in the ventures.
“Ivanhoé Cambridge welcomes CPPIB as our co-investment partner with LOGOS in Singapore and Indonesia,” said Rita-Rose Gagné, president of growth markets at Ivanhoé Cambridge. “Increasing our allocation reaffirms our view of the growth potential in southeast Asia and our confidence in LOGOS as a best-in-class logistics real estate specialist in Asia-Pacific.”