ARA-backed logistics developer and manager LOGOS Property Group is venturing into Vietnam and South Korea with a $1.2 billion targeted capital raise, PERE can exclusively reveal.
The Sydney-headquartered logistics firm is planning to raise $400 million in Vietnam and $800 million in South Korea, respectively, for a develop-to-core strategy, according to sources close to the situation.
PERE understands the firm started fundraising for Vietnam at the end of December and is expected to complete its capital raise there in the next few weeks. LOGOS also began marketing for its $800 million South Korean venture last month and is expected to close at the end of this year. The firm has not yet deployed capital in either country.
LOGOS confirmed the fundraising plan but declined to comment on the investors involved.
Trent Iliffe, managing director at LOGOS, told PERE that Vietnam has come onto the global stage for logistics development over the past two years, as the US-China trade war has contributed to the decentralization of the global supply chain. “This has just heightened the need to decentralize from China, and Vietnam is an obvious beneficiary,” he explained. The firm named former PwC executive Glenn Hughes as the head of Vietnam earlier this year.
Meanwhile, “Korea has always been within our sights and we started seriously looking at this market two years ago,” said Iliffe. Although the country’s logistics market was heavily dominated by large Korean corporations in the past, that began to change about five years ago. “They have been thinking of different ways to deploy the equity back into their businesses rather than necessarily investing in the real estate.”
He believes there is an opportunity to enter the market now because the Korean logistics market is still in the development stage, with no other major international or regional development group active in the space except ESR/Kendall Square.
LOGOS’s foray into Vietnam and South Korea is the latest milestone in the 10-year history of the firm, which sold an approximately 70 percent stake to ARA Asset Management earlier this year. Following its expansion into Vietnam and South Korea, the firm is eyeing Thailand and Japan as its next investment destinations, PERE can reveal.
“Coming out of covid-19, logistics is being viewed as a defensive asset class with strong cashflows,” said Iliffe. The sector has benefited from a pandemic-related boost in e-commerce activity, with increased consumer demand for food security in turn driving up logistics space needs.