LOGOS closes its third China logistics venture: US$830M of investment capacity with Ivanhoe Cambridge and PFA Pension

Media
Monday 30th October 2017

LOGOS is pleased to announce it has established its third logistics venture in China, LOGOS China Logistics Venture 3 (“the Venture”), with Ivanhoé Cambridge and PFA Pension (PFA) as equal partners.

The Venture will focus on the development of high quality logistics facilities in four regions covering North, East, South and Mid-West China. It extends the LOGOS China investment mandate beyond Greater Shanghai, establishing the business as a national provider of quality industrial and logistics properties. The establishment of the Venture also strengthens the relationship between LOGOS and Ivanhoé Cambridge and welcomes PFA as a new investor to the business.

The Venture will have up to US$830M in investment capacity.  The significant investment and broader geographic scope reflects LOGOS’ and the investors’ confidence in the opportunities available in China on the back of compelling macroeconomic fundamentals, trade flow and ecommerce growth as well as the quality of the identified pipeline.

“The establishment of LOGOS’ third China venture is testament to the logistics growth story, a key beneficiary of the e-commerce boom in China, and our continued track record in development of high quality logistics assets as well as the ability to secure an attractive pipeline of opportunities for our investors.” said John Marsh, Joint Managing Director of LOGOS.

Mr Marsh added: “Partnerships are fundamental to our business and we are pleased to have extended our relationship with Ivanhoé Cambridge as well as attracting PFA – both leading real estate investors – into our latest China venture.”

Trent Iliffe, Joint Managing Director of LOGOS said: “This venture will build on the significant experience that LOGOS has from delivering high quality institutional logistics assets across Asia Pacific and leverage the extensive demand from our existing regional and new domestic customers, to continue developing institutional grade assets across greater China.”

Rita-Rose Gagné, President, Growth Markets, for Ivanhoé Cambridge, said: “Ivanhoé Cambridge welcomes PFA as a co-investment partner with LOGOS in China. Increasing our allocation in China reaffirms our view of the growth potential and our confidence in LOGOS as a best-in-class logistics real estate specialist across the Asia Pacific region.”

“The Chinese logistics sector continues to offer strong absorption and growth rates due to a long-term undersupply of modern logistics facilities. PFA has strong conviction on the growth of the logistics sector in Asia and particularly in China,” said Michael Bruhn, Head of Real Estate for PFA Pension. “We are looking forward to making this direct real estate investment in China and to partner with LOGOS and Ivanhoé Cambridge.”

Macquarie Capital (Australia) Limited (together and through its affiliates, Macquarie Capital) acted as exclusive financial adviser to LOGOS for the transaction.