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To leverage on the booming e-commerce business and a growing middle-class in Southeast Asia, Canada’s two largest pension funds have teamed up with logistics property operator LOGOS to invest in warehouses in Singapore and Indonesia, reported Reuters.
Pursuant to this goal, the Canada Pension Plan Investment Board (CPPIB) agreed that it will initially spend S$200 million to acquire a stake of around 48 percent in LOGOS Singapore Logistics Venture. It will also commit US$100 million (S$141.1 million) to secure an interest of about 48 percent in LOGOS Indonesia Logistics Venture.
The said deals would lead to the first direct property investments in Singapore and Indonesia by CPPIB, the top pension fund in Canada.
In both joint ventures, CPPIB and Ivanhoé Cambridge are considered equal partners. The latter is the real estate division of the country’s second biggest pension fund manager – Caisse de depot et placement du Quebec.
Meanwhile, the remaining stakes in both joint ventures will be held by LOGOS, which operates in Australia, Indonesia, China and Singapore.
Institutional investors and private equity firms have been pumping billions of dollars into Asia’s warehouse and logistics sector in recent years due to the promising outlook for e-commerce.
Company insiders also revealed in February that the short-listed bidders for Singapore-listed Global Logistic Properties include Blackstone Group, Warburg Pincus and Hopu Investments.
In January, Warburg Pincus’ partly owned subsidiary, e-Shang Redwood, also entered into an agreement to purchase an 80 percent indirect stake in Cambridge Industrial Trust Management, the manager of Singapore-listed Cambridge Industrial Trust (CIT).
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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