Pan-Asian logistics group Logos has established a new AUD500m (€318.5m) core and core-plus vehicle with an Australian investor.
Logos and its partner, who has declined to be identified, but some suggested could be a super fund, have committed to fund the joint venture with AUD500m to acquire and own logistics assets.
The venture, known as the Logos Australia Logistics Portfolio, will invest in core and core-plus logistics facilities in prime industrial markets, predominantly along Australia’s eastern seaboard.
The “significant” commitment from Logos and its investment partner reflected confidence in the opportunities available and the performance of the logistics market in Australia, the company said in a statement today.
Trent Iliffe, joint managing director of Logos, said: “We will be looking to acquire existing assets and to aggregate a premium portfolio with long leases to high-quality tenants for this venture, with value-add upside.”
John Marsh, Logos joint managing director, said the Australian logistics market had continued to deliver solid returns over the past three, five and ten years.
He expected this performance to continue because the logistics sector was benefitting from strong demand driven by trade flows and growth in online retailing.
Logos, which is backed by Macquarie Capital and Ivanhoe Cambridge, now has AUD$4bn of equity commitments to 14 ventures across five regions, with a target of more than AUD9bn in managed assets.
Logos closed its third China Logistics Venture with Ivanhoe Cambridge and PFA Pension in October last year. This has up to US$830m in investment capacity.
The China deal came within days of Logos India launching a new logistics venture with Ivanhoé Cambridge and QuadReal Property Group.
The Logos India Logistics Venture will have up to US$800m to invest in modern logistics facilities in key Indian cities.