The parties bought 820,210 square feet of land, which includes 492,126 square feet of existing buildings and 328,084 square feet of pre-approved logistics development. The existing buildings already have a tenant, solar panel producer REC, which has entered a 20-year leaseback agreement with the venture.
LOGOS managing director of South-East Asia Stephen Hawkins told PERE that the asset is in a good location, near Singapore’s new port and on designated industrial land. While REC will provide the venture with a steady income stream, the industrial asset also has capacity to house additional tenants, he added.
The venture partners included three unnamed investors represented by real estate investment firm LaSalle GPS, as well as Dutch institutional investor Bouwinvest, Canadian real estate investor Ivanhoe Cambridge and Canada Pension Plan Investment Board. The latter two investors participated in the deal through LOGOS’s previously established Singapore Logistics Venture.
Though LOGOS declined to disclose the equity stakes and capital committed by each member of the venture, Hawkins told PERE that the stakes held among the four investors were mostly equal. Bouwinvest separately disclosed in a press release on its website that it had committed €48 million to the deal, which represents a 24.5 percent stake. An investor committee will be established for the venture, and Bouwinvest is expected to hold a seat.
For Bouwinvest, the new venture is part of its investor bpfBouw’s goal to grow its international real estate assets to 40 percent of its total real estate portfolio. Currently, of the investor’s €10 billion in assets under management, €3.2 billion are investments outside of its domestic market, accounting for 32 percent of the total real estate AUM.
Like Bouwinvest, LaSalle GPS has not previously been involved with LOGOS’s industrial ventures. The global investment platform launched in November 2018 following parent company LaSalle Investment Management’s acquisition of London-based asset management firm Aviva Investors’ real estate multi-manager business and Encore+ fund. The firm declined to disclose the three clients that it represented.
It has not yet been determined whether Bouwinvest and LaSalle GPS will join CPPIB, Ivanhoe Cambridge and LOGOS on any additional logistics acquisitions in the region, Hawkins said.
For CPPIB and Ivanhoe Cambridge, this venture represents a continuation of the pension plans’ latest investments with LOGOS. Ivanhoe Cambridge previously announced an investment alongside Los Angeles-based real estate investment firm CBRE Global Investment Partners and LOGOS in a joint venture to invest in Chinese logistics properties in 2015. The real estate subsidiary of institutional fund manager Caisse de dépôt et placement du Québec also acquired a stake in the LOGOS business in 2016, though it declined to disclose its ownership stake.
CPPIB, meanwhile, joined Ivanhoe Cambridge in March 2017 to back LOGOS’s SLV and Indonesia LOGOS Venture. The investor previously announced it had committed S$200 million to LSLV, which translates to a 48 percent stake. CPPIB also committed $100 million for a 48 percent stake in the LILV.