German pension fund Nordrheinische Ärzteversorgung (NAEV) and the Employees Retirement System (ERS) of Texas have committed $250m (€259m) to a new open-ended pan-Asian logistics fund created by ESR and Logos.
Texas ERS confirmed to IPE Real Assets that it had provided a $100m commitment.
The US pension fund said it was investing “with the purpose of gaining long-term exposure to high quality core logistics assets across the Asia-Pacific region”.
ESR-Logos Pan Asia Core+ Venture (PACV), which targets stabilised assets, will have some exposure to value-add and develop-to-core strategies across Asia-Pacific.
The fund will initially focus on the developed markets of Australia, New Zealand, Singapore, Japan and South Korea.
PACV stands to take advantage of ESR and Logos’ $12bn development workbook and $35bn of additional assets expected to be completed over the next five years.
Its first investment is in a joint partnership with another Logos capital partner for around $200m – a forward purchase of a logistics facility in the Seoul Capital Area.
Logos managing director and co-CEO Trent Iliffe said the strong interest of the two investors in PACV was a testament to the continued long-term growth story of the Asia-Pacific logistics market.
Logos group head of funds management Bart Coenraads added: “We continue to see long-term support for the right assets on the back of a secular growth thematic and anticipate a number of cyclical opportunities over the coming six to 12 months as markets adjust to higher interest rates.
“PACV will also be focused on ESG, where we look to construct a portfolio of high-quality ESG-compliant assets, delivering sustainable income and future-proofing returns to our investors.”
Josh Daitch, ESR Group head of capital and fund management, said that, while both ESR and Logos had traditionally focused on country-specific ventures, the two companies believed that many investors were seeking to gain diversified new-economy exposure across the region through a private investment vehicle.
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