Canada Pension Plan Investment Board (CPPIB) and Ivanhoé Cambridge have backed logistics specialist Logos in its expansion into Indonesia and a broadening of its presence in Singapore.
The two Canadian institutions and Logos Southeast Asia have established a US$400m (€374m) platform to develop state-of-the-art logistics facilities to support Indonesia’s rapidly-growing e-commerce sector.
IPE Real Estate understands that discussions with CPPIB and Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, about expanding into Indonesia have been ongoing since late last year.
Indonesia is set to become the dominant e-commerce market of Southeast Asia.
Stephen Hawkins, Logos Southeast Asia’s managing director, has been travelling to Indonesia frequently from his base in Singapore to establish a platform in the country.
Hawkins told IPE Real Estate that Logos has a pipeline of projects to feed into its Indonesian platform over coming months, with the focus on developing and owning high quality, modern logistics properties in Greater Jakarta.
The commitments from Canada provide Logos with more than US$400m in investment capacity, he confirmed.
But it is understood that the US$400m in capital is an initial commitment and that the two investors could increase their investment.
While Hawkins would not provide specific information, IPE Real Estate understands Logos is well advanced in securing a large site in Jakarta from an international company which no longer requires the land.
Both formal development approval and the purchase are likely to be completed before the middle of the year, allowing Logos to start the construction of a large logistics centre.
Logos is already speaking to potential tenants, planning to pre-lease the facilities before construction begins.
Hawkins said a number of global logistics players were already in Indonesia seeking high quality facilities from which to run their operations.
Ivanhoé Cambridge, together with Macquarie Capital, invested in Logos last year.
Rita-Rose Gagné, executive vice president for growth markets at Ivanhoé Cambridge, said: “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.”
CPPIB has joined Ivanhoé Cambridge to partner in the Logos Singapore venture, which aims to invest SGD850m (€563m) in modern logistics facilities.
Hawkins said Logos will continue with its strategy of acquiring and developing high-quality, modern industrial and logistics properties in Singapore, where it now has an interest in three properties.
Logos has also announced the establishment of an office in Jakarta, expanding its bricks-and-mortar presence to four countries in the region (Australia, China, Indonesia, Singapore).