Keppel, Manulife units form $200m Indonesian logistics property venture

Jakarta, Indonesia. Photo: Gede Suhendra/unsplash

Alpha Investment Partners, a private fund manager under Keppel Capital, and Manulife subsidiary Asuransi Jiwa Manulife Indonesia have teamed up with logistics facilities provider Mega Manunggal Property (MMP) to launch a $200-million Indonesian logistics property venture.

According to the announcement, the three companies will jointly acquire and manage logistics properties in Indonesia through the joint venture, which has received initial capital commitments of about $93 million from the partners.

Alpha will be the investment manager of the venture, while MMP, a listed logistics space provider in Indonesia, will be the strategic advisor to Alpha and the property manager of the venture’s logistics properties.

The joint venture intends to acquire stakes in four modern and stabilised logistics assets in Greater Jakarta from MMP as its initial portfolio. The initial portfolio comprises three single-tenanted properties and one multi-tenanted logistics property, with a total net lettable area of over 163,000 sq m.

These assets, with an occupancy of more than 96 per cent, serve established tenants in the consumer goods, logistics, and e-commerce industries, such as Unilever, Li & Fung, and DHL.

The launch of the venture comes as the Indonesian logistics property sector continues to see strong demand on the back of the country’s growing middle-class population, according to Alpha Investment Partners CEO Alvin Mah.

The venture, he added, “will allow us to capture opportunities arising from this evolving landscape”.

Indonesia’s logistics market is projected to hit $74.9 billion in terms of revenues by 2023, according to research provider Ken Research, as the middle class continues to drive growth in consumption and e-commerce and with the limited supply of modern logistics facilities.

“We are very pleased to collaborate with Alpha and Manulife, two of the world’s leading institutions, as it will not only enable us to monetise our assets but also offer capital sustainability to support MMP in capturing opportunities in the growing modern logistics property market in Indonesia,” said MMP CEO Bonny Budi Setiawan.

Manulife Indonesia said the acquisition fits well with its long-term investment strategy for the Asia Pacific market.

“The quality of the assets is well regarded and, along with the country’s positive long-term macro and demographics prospects,” said Ryan Charland, President Director & CEO Manulife Indonesia.

Last year, Sydney-based real estate firm LOGOS had fully deployed its $400-million Indonesia-focused platform and is looking to raise more capital for the logistics venture.

Launched just two years ago, LOGOS has already invested the entire fund into the acquisition of four large development projects totalling circa 60 hectares of land.

Early this year, Keppel Capital, the asset management arm of Singapore conglomerate Keppel Corporation, was reported to be gearing up to raise at least $1 billion for a fourth pan-Asian value-add property fund, just a year after it secured $1.1 billion, including co-investments, for the third fund under the Alpha Asia Macro Trend (AAMTF) series.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.