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|LOGOS e-commerce hub and related logistics service facility in Singapore|
This portfolio will be modern, high-quality logistics facilities across the key markets of greater Ho Chi Minh City, greater Hanoi, and greater Danang.
The LOGOS Vietnam Logistics Venture (LOGOS Vietnam) aims to establish a portfolio initially forecast at $350 million in gross asset value.
The new venture is the fourth one closed by Logos this year, with the group raising over $1 billion throughout the region despite the current market disruptions. Through this venture, Logos and its investment partner aim to establish a modern, quality portfolio of logistics facilities to support local and international customers’ growth across Vietnam.
LOGOS’ managing director and co-CEO Trent Iliffe said that the group’s move into Vietnam is an important step in its regional growth strategy driven by customers’ needs.
“We are pleased to be partnering with a leading global institutional investor as part of this move. Being able to establish this new venture in the midst of the COVID-19 pandemic is testament to Vietnam’s exciting growth story, which is driven by the global trade wars, decentralisation of supply chains, and a natural evolution of this market, and LOGOS’ proven track record across Southeast Asia,” said Iliffe.
LOGOS’ Southeast Asia managing director Stephen Hawkins added that after establishing its Southeast Asia business in 2016, the group has undertaken a targeted growth programme across the region from Singapore to Indonesia, Malaysia, and now Vietnam as it looks to support customers’ growth strategies across this fast-developing region.
“Vietnam’s strong underlying market fundamentals and the significant growth in e-commerce makes it an attractive market for investors and customers alike,” said Hawkins.
LOGOS entered the Vietnamese market earlier this year with the appointment of Glenn Hughes, a real estate and infrastructure specialist who has worked in both private and government sector organisations across Southeast Asia, Australia, and the Middle East as head of Vietnam to lead the group’s in-country strategy.
“The long-term potential of the Vietnamese logistics market is supported by strong tailwinds as companies seek to diversify their supply chains across multiple countries and further invest in technology within their facilities to meet the growing demand for e-commerce,” Glenn commented.
LOGOS has identified an attractive pipeline of development sites for this venture and will be progressing with strategic acquisitions over the coming months.
It is planned that LOGOS would be able to deliver a steady pipeline of speculative and built-to-suit logistics facilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.
LOGOS’ Asia-Pacific portfolio comprises of 100 logistics estates across nine countries with AUM of approximately $9.5 billion.
It counts some of the world’s largest fund managers as its shareholders, including ARA Asset Management, a leading Asia-Pacific real assets fund manager with a global reach, which took a majority stake in the company in March 2020. MIRA Real Estate acted as exclusive financial adviser to LOGOS for the venture.