Denmark’s PFA Pension and Canada’s Ivanhoé Cambridge are participating in a new investment vehicle, LOGOS China Logistics Venture 3, which will have a total investment capacity of US$850m (€561m).
The move is PFA’s first direct investment foray into Asia-Pacific. PFA is an investor in the Prime Property Fund Asia, an open-ended core fund run by Morgan Stanley Real Estate Investing (MSREI).
Michael Bruhn, Head of Real Estate, PFA Pension, said in a statement today: “PFA has strong conviction on the growth of the logistics sector in Asia, particularly in China.
“The Chinese logistics sector continues to offer strong absorption and growth rates due to a long-term undersupply of modern logistics facilities.”
Establishment of this latest venture also strengthens the relationship between LOGOS and Ivanhoé Cambridge. Since taking a strategic stake in LOGOS in March 2016, Ivanhoe Cambridge has invested in vehicles LOGOS has established to invest in Singapore, Indonesia, India, Australia and China.
Rita-Rose Gagné, Ivanhoe Cambridge president for growth markets, said the decision to increase allocation to China “reaffirms our view of the growth potential”.
The venture will focus on the development of high-quality logistics facilities in four regions, covering north, east, south and mid-west China.
The vehicle reflects an extension of the LOGOS China investment mandate beyond Greater Shanghai towards the creation of a national platform for the group.
“The establishment of LOGOS’ third China venture is a testament to the logistics growth story, a key beneficiary of the e-commerce boom in China,” said John Marsh, LOGOS’ joint managing director.