Ivanhoé, CBRE GI co-invest in $400m LOGOS China venture

The two firms have continued their partnership with the Macquarie and Ivanhoé Cambridge-backed logistics firm by jointly investing in the second LOGOS China vehicle

LOGOS Property Group, the Sydney-headquartered logistics developer and fund manager, has formed its second logistics real estate vehicle in China with co-investments from Ivanhoé Cambridge and CBRE Global Investment Partners.

The LOGOS China Logistics Venture (LCLV) can make investments worth approximately $400 million in logistics properties. The individual equity commitment by each partner was not disclosed.

The capital raised via the vehicle would be used for acquiring and developing logistics assets in Shanghai and the neighbouring cities to take advantage of the shortage of investment-grade logistics assets in these markets, the firm said in a statement.

“This is an exciting next step in the growth of LOGOS’ business in China,” said John Marsh, joint managing director and co-founder of LOGOS. “We are delighted to extend our relationship with Ivanhoé Cambridge and CBRE Global Investment Partners who continue to support our ventures throughout Asia Pacific.

LCLV is a follow-on vehicle to the LOGOS China Logistics Club, the group’s first investment vehicle in the country set up in early 2015 in partnership with CBRE Global Investment Partners and Ivanhoé Cambridge. The total size of the joint venture partnership was also understood to be $400 million. 

LOGOS has been actively expanding its reach in Asia and opened its first office in Singapore earlier this year to mark its foray into Southeast Asia. In February this year, Ivanhoé Cambridge is said to have acquired a strategic interest in the company. A few months later, the Canadian investor seeded the firm’s debut vehicle in Southeast Asia with an S$150 million ($111 million; €100 million) equity commitment. The LOGOS Southeast Asia venture then went on to make its first investment by acquiring a stake in two Singaporean property companies in partnership with Yang Kee Logistics, a Singapore-based logistics asset manager.

With operations in Australia, China and Singapore, LOGOS has approximately A$2 billion ($1.52 billion; €1.37 billion) in assets under management.