|At Tien Sa port in Da Nang (Photo: VNA)
The LOGOS Vietnam Logistics Venture aims to establish an initial forecast portfolio of approximately US$350 million in gross asset value. The new venture is the fourth by LOGOS this year, with the group raising over US$1 billion throughout the region despite the current market disruptions. Through this venture, LOGOS and its investment partner aims to establish a modern, quality portfolio of logistics facilities to support local and international customers’ growth across Vietnam.
LOGOS’ Managing Director and Co-CEO, Trent Iliffe, said “Our move into Vietnam is an important step in our regional growth strategy driven by customers’ needs and we are pleased to be partnering with a leading global institutional investor as part of this move.
“Being able to establish this new venture in the midst of the COVID-19 pandemic is testament to Vietnam’s exciting growth story, which is driven by the global trade wars, decentralisation of supply chains and a natural evolution of this market, and LOGOS’ proven track record across Southeast Asia,” he said.
LOGOS’ Managing Director, Stephen Hawkins, added “After establishing our Southeast Asia business in 2016, we have undertaken a targeted growth programme across the region from Singapore, to Indonesia, Malaysia and now Vietnam as we look to support our customers’ growth strategies across this fast developing region.
“Vietnam’s strong underlying market fundamentals and the significant growth in e-commerce makes it an attractive market for investors and customers alike,” he said.
LOGOS entered the Vietnam market earlier this year with the appointment of Glenn Hughes, a real estate and infrastructure specialist who has worked in both private and government sector organisations across Southeast Asia, Australia and the Middle East, as Head of Vietnam to lead the group’s in-country strategy.
“The long-term potential of the Vietnam logistics market is supported by strong tailwinds, as companies seek to diversify their supply chains across multiple countries and further invest in technology within their facilities to meet the growing demand of e-commerce,” Glenn added.
LOGOS has identified an attractive pipeline of development sites for this venture and will be progressing with strategic acquisitions over the coming months. It is planned that LOGOS would be able to deliver a steady pipeline of speculative and build-to-suit logistics facilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.
LOGOS’ Asia Pacific portfolio comprises 100 logistics estates across nine countries with AUM of approximately US$9.5 billion. LOGOS counts some of the world’s largest fund managers as its shareholders, including ARA Asset Management, a leading Asia Pacific real assets fund manager with a global reach, which took a majority stake in the company in March 2020. MIRA Real Estate acted as exclusive financial adviser to LOGOS for the venture.