The venture aims to establish an initial forecast portfolio of approximately $350 million and focuses on Ho Chi Minh City, Hanoi and Danang.
Logos, a dynamic and growing logistics specialist, announced that it has established its first Vietnam venture with a global institutional investor for the development of modern, high-quality logistics facilities across the key markets of Ho Chi Minh City, Hanoi and Danang.
The Logos Vietnam Logistics Venture (the Venture) aims to establish an initial forecast portfolio of approximately $350 million by gross asset value.
The new Venture is the fourth venture 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 aims to establish a modern, quality portfolio of logistics facilities to support local and international customers’ growth across Vietnam.
Logos said that it 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 the group would be able to deliver a steady pipeline of speculative and build-to-suit logisticsfacilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.
Logos’ managing director and Co-CEO, Trent Iliffe, said: “Our move into Vietnam is an important step in our regional growth strategy driven by customers’ needs and 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 South East Asia.
Logos’ managing director, Stephen Hawkins, added: “After establishing our South East Asia business in 2016, we have undertaken a targeted growth program across the region from Singapore, to Indonesia, Malaysia and now Vietnam as we look to support our customers’ growth strategies across this fast developing region.”
Vietnam’s strong underlying market fundamentals and the significant growth in ecommerce makes it an attractive market for investors and customers alike, he said.
Logos entered the Vietnam 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 organizations across South East Asia, Australia and the Middle East, as head of Vietnam to lead the group’s in-country strategy.
“The long-term potential of the Vietnam 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 of ecommerce,” Glenn commented.
Logos’ Asia Pacific portfolio comprises 100 logistics estates across nine countries with assets under management of approximately $9.5 billion. Logos 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.
