LOGOS eyes raising $1.2b for logistics ventures in Vietnam, South Korea

ARA Asset Management-backed logistics real estate group LOGOS Property is raising $1.2 billion for a foray into Vietnam and South Korea, according to a top executive of the firm.

The Sydney-headquartered firm is seeking $400 million for a Vietnam vehicle and another $800 million for South Korea for its build-to-core strategy.

The development was first reported by PERE on Thursday. Trent Iliffe, managing director and co-CEO of LOGOS, confirmed the plan to DealStreetAsia.

In the past, the firm has secured capital from strategic investors such as the Canada Pension Plan Investment Board (CPPIB), Ivanhoé Cambridge and Dutch property fund manager Bouwinvest in raising funds for its ventures in China, Indonesia and Singapore.

“Vietnam came on the global stage about two years ago. We were first asked to come to Vietnam to support one of our major customer’s interest in Ho Chi Minh City. As we opened the door with other customers, our commitment to set up in Vietnam was resolute as the needs of these companies became evident,” Iliffe said in an email interaction.

The growth potential of the Southeast Asian country is also driven by market fundamentals, including the trade war, the decentralisation of the global supply chain, as well as growth in the e-commerce market, he said.

LOGOS appointed Glenn Hughes, former director of capital projects and infrastructure at PwC Vietnam, as its Vietnam country head in January this year.

Meanwhile, Korea spells an opportunity for LOGOS because apart from ESR/Kendall Square, “there are no other international or regional development groups” in the country, said Iliffe.

“We have a number of our customers asking us to come and support their growth in Korea and are excited by the future opportunities here,” he added.

LOGOS will focus on acquiring and developing assets that support the core logistics sectors of e-commerce, food and cold storage. “We will need to build this product from the ground up to meet the needs of the modern logistics sector requirements,” Iliffe revealed.

These two Asian markets have become appealing to logistics real estate investors in the past couple of years. ESR Cayman recently invited CPPIB and Dutch pension fund APG to set up another $1 billion joint venture to invest in Korea’s industrial properties.

In Vietnam, BW Industrial, a joint venture between private equity firm Warburg Pincus and local property developer Becamex IDC, claims to be the largest industrial platform in the country with about $215 million in capital.

Meanwhile, global logistics giant GLP set up shop in Vietnam earlier this year, with Kent Yang, its former China president, and Chih Cheung, a Li & Fung board member, as its founding partners, Mingtiandi reported.

Older players in Vietnam’s industrial real estate scene include VSIP, a joint venture between Becamex and Singapore’s Sembcorp Development, and overseas conglomerates who have massive investments in the country.

Addressing competition in sourcing deals, Iliffe said, “There will always be strong competition in any market, the value is understanding customer needs in terms of location today and in the future. Where possible, we like to acquire land with customer support. We are comfortable on our ability to deliver in these markets.”

LOGOS might also look at Japan and Thailand as its next expansion targets, according to PERE.

The firm’s Korea and Vietnam expansion strategy comes on the heel of deployment of a $400-million Indonesia vehicle last year and the first close of its fourth China logistics venture at $800 million in April 2020.

Established in Australia in 2010 by founders John Marsh and Iliffe, LOGOS was acquired by ARA in March this year to become the latter’s exclusive platform for logistics assets globally. By June, LOGOS had over 6 million square metres of property owned and under development, with a completed value of A$10 billion ($7.16 billion) across 20 ventures, including the Singapore-listed ARA LOGOS Logistics Trust.

Singapore Reporter/s

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

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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.