Australian logistics real estate group LOGOS has announced the establishment of its first Viet Nam venture with a global institutional investor for the development of modern, high-quality logistics facilities across the key markets of Greater HCM City, Ha Noi and Da Nang.
The LOGOS Vietnam Logistics Venture aims to establish an initial forecast portfolio of approximately US$350 million in gross asset value. The new venture is the fourth 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 Viet Nam.
LOGOS’ Managing Director and Co-CEO, Trent Iliffe, said: “Our move into Viet Nam 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 Viet Nam’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,” he said.
LOGOS’ Managing Director, Stephen Hawkins, added: “After establishing our South East Asia business in 2016, we have undertaken a targeted growth programme across the region from Singapore, to Indonesia, Malaysia and now Viet Nam as we look to support our customers’ growth strategies across this fast developing region.
“Viet Nam’s strong underlying market fundamentals and the significant growth in e-commerce makes it an attractive market for investors and customers alike,” he said.
LOGOS entered the Viet Nam 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 organisations across South East Asia, Australia and the Middle East, as Head of Viet Nam to lead the group’s in-country strategy.
“The long-term potential of the Viet Nam 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 e-commerce,” Glenn added.
LOGOS 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 LOGOS would be able to deliver a steady pipeline of speculative and build-to-suit logistics facilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.
LOGOS’ Asia Pacific portfolio comprises 100 logistics estates across nine countries with AUM 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. MIRA Real Estate acted as exclusive financial adviser to LOGOS for the venture. — VNS
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