LOGOS expects final close for latest China fundraise by year-end

LOGOS is expected to wrap up its latest Chinese logistics venture in the next few months, shortly after corralling $420 million in equity in an initial close, according to sources close to the situation.

It is understood the firm has been in talks with three other investors, new and existing, to raise a “similar amount of equity” in the second and final close of its LOGOS China Logistics Venture 4, two of the sources told PERE. On completion, the vehicle will have an investment capacity up to $1.6 billion, according to one source.

LOGOS declined to comment on fundraising details but confirmed that the firm is talking to new investors.

In the face of the disruption caused by the pandemic, John Marsh, managing director and co-CEO at LOGOS, told PERE that investors are “cautious” but still believe in the strength of the Chinese economy and logistics sector. The firm has adopted digital marketing methods, including virtual site visits and virtual data rooms, he said.

Marsh said the firm has now done a lot of business via digital channels and expects the use of digital platforms can “only become more important as travel will be difficult for a while.” The platforms have proven to be “very successful in giving investors comfort,” he said. “The details of information that we can provide digitally are very extensive. And a lot of investors have seen our products in other locations, they understand the technical aspects of what we are building [in China].”

After launching in the middle of last year, LOGOS China Logistics Venture 4 took eight months to raise the $420 million in initial equity. Dutch pension fund manager Bouwinvest committed $100 million in the first close, plus with Ivanhoé Cambridge and a new investor from the Gulf Co-operation Council, according to a release. Both Ivanhoé Cambridge and Bouwinvest are existing investors with LOGOS.

Just like its predecessor, Venture 4 will focus on develop-to-core logistics opportunities in key logistics markets in Beijing, Shanghai, Guangzhou and selected markets in China’s midwest. Its predecessor was closed at the end of 2017 with investments from Ivanhoé Cambridge and Denmark’s PFA Pension. With an investment capacity of $830 million, that fund is close to being fully invested and all of its projects are understood to be under development.