LOGOS, Ivanhoe Cambridge and Bouwinvest are pleased to announce they have completed a first close to establish a new logistics development venture in China with a Gulf Cooperation Council investor for the development of high-quality logistics and industrial facilities in the key logistics markets servicing greater Beijing, Shanghai, Guangzhou and selected markets in the mid-west of China.
The establishment of the LOGOS China Logistics Venture 4 and its investment strategy builds on the proven and successful strategies of LOGOS and Ivanhoe Cambridge's previous three ventures in China.
The Venture's investment strategy is to develop a diversified portfolio of facilities targeted at third party logistics and industrial tenants who service the growing domestic consumption and e-commerce markets. The Venture will have over US$800 million in investment capacity from this first closing with the investment program to commence when China's market conditions stabilise following COVID-19.
LOGOS' Managing Director and Co-CEO, John Marsh, said: "We are pleased to have again extended our relationship with Ivanhoe Cambridge in China and also welcome Dutch institutional investor Bouwinvest and a new GCC-based investment partner for this Venture.
"Our partners' strong interest in this Venture is testament to the continued growth story of this market, which is coming back into full operation following COVID-19, and LOGOS' proven track record in China," he added.
The China logistics sector is underpinned by strong, enduring market fundamentals including the significant growth in ecommerce, which continues to provide a safe and convenient alternative to traditional retail.
Daniel Cai, LOGOS' Chief Operations Officer, added: "We have been exceptionally pleased with the resilience of our portfolio during COVID-19 which is testament to the strength of domestic consumption in China; a key focus for LOGOS."
"Looking forward, we have identified an attractive pipeline for this Venture and will be progressing with some strategic acquisitions over the coming months," he added.
George Agethen, Ivanhoe Cambridge's Senior Vice President, Asia-Pacific, commented: "The continued solid performance of our previous three China ventures and current market conditions makes this the right time for Ivanhoe Cambridge to further invest in this market with LOGOS. The Venture has been structured to capture opportunities as we cautiously emerge from the COVID-19 crisis and reinforces our positive views on the China and global logistics sector."
Tjarko Edzes, who heads Bouwinvest Asia-Pacific Investments, commented: "We are pleased to expand our logistics portfolio in the region with LOGOS and believe long-term fundamentals in China are compelling while current market conditions and the way the venture is set-up will enable us to secure attractive opportunities for logistics development".
The establishment of this Venture follows LOGOS having almost fully committed the equity contributions in LOGOS China Logistics Venture 3, which consists of 11 properties, with a total GFA on completion of approximately 1.1 million sqm.
LOGOS' Asia Pacific portfolio comprises 88 logistics assets across eight countries with a completed value of approximately US$7.0 billion.
Macquarie Fund Advisers Pty Limited (together and through its affiliates, MIRA Real Estate) acted as exclusive financial adviser to LOGOS for the transaction.