CPPIB, Ivanhoe back LOGOS’ Indonesia logistics foray

The Canadian pair are providing the Sydney-headquartered logistics operator with more than $1bn to expand in Indonesia and elsewhere in Southeast Asia.

Canada Pension Plan Investment Board and Ivanhoe Cambridge have established a joint venture partnership with LOGOS to invest in logistics properties in Indonesia.

The total commitment by the two Canadian investors will provide the Sydney-headquartered LOGOS with more than $400 million in investment capacity, according to a company statement.

LOGOS will use the capital raised via the joint venture to develop and own logistics properties in Greater Jakarta, a strategy that the firm says has been driven by Indonesia’s compelling macroeconomic fundamentals, rapid e-commerce growth and a growing logistics sector.

LOGOS also announced that it has set up an office in Jakarta, continuing its expansion into Southeast Asia that first began with the opening of a Singapore office in March last year. A few months later in June, Ivanhoe Cambridge, which owns a strategic interest in LOGOS, backed the firm’s debut fund in Southeast Asia with a S$150 million ($106 million; €99 million) commitment.

The logistics operator made the first investment from the fund in Singapore last year by forming a strategic partnership with Yang Kee, a Singaporean logistics asset manager, and acquiring a stake in two of its logistics assets.

Ivanhoe Cambridge and CPPIB have also made equity commitments to LOGOS’ Singapore logistics strategy. The joint venture partnership will provide LOGOS with more than S$800 million in investment capacity, according to the statement.

Rita-Rose Gagne, president for growth markets at Ivanhoe Cambridge, said increasing its allocation reaffirms Ivanhoe’s view of the growth potential in Southeast Asia and its confidence in LOGOS.

Jimmy Phua, managing director and head of real estate investments for Asia at CPPIB commented on the partnership: “The logistics sector in Southeast Asia continues to grow as a result of the burgeoning middle class and rise of e-commerce and presents an excellent opportunity for a long-term investor like CPPIB. We are looking forward to making our first direct real estate investments in Singapore and Indonesia through well-established like-minded partners like LOGOS and Ivanhoe Cambridge.”