Logos has bought its first development site in Indonesia, soon after the logistics specialist was given US$400m (€371m) in funding from two Canadian institutional investors.
The company’s expansion into Indonesia is being backed by Canada Pension Plan Investment Board and Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec.
It will begin investing US$130m in the development of three-level facility, following the acquisition of a site near Jakarta.
The land is located at Pondok Ungu in Bekasi, which offers access to Jakarta’s central business district, Jakarta international airport, the seaport and nearby road infrastructure.
The first phase of construction is expected to be completed by the end of 2018.
Logos is in discussion with a number of multinational companies to lease the facility.
Stephen Hawkins, managing director of Logos South East Asia, said the project would create one of the largest and most modern logistics facilities in Indonesia.
“We are seeing strong and growing tenant demand in the Greater Jakarta market,” he said.
“Indonesia’s young population, growing middle-class, and rising consumption make it a very attractive market for the logistics industry.”
Hawkins said land with so close to Jakarta rarely becomes available. “The site is very well-situated for e-commerce, retail logistics and [fast-moving-consumer-goods] logistics operations.”