Australian-based logistics developer and investor Logos Property has completed the first close of a new US$800m logistics development venture in China with Canadian investor Ivanhoé Cambridge and Dutch investment manager Bouwinvest.
The LOGOS China Logistics Venture 4 is backed by the two institutional investors, as well as an unnamed GCC-based (Gulf Cooperation Council) investor, the company said in an announcement.
The JV will develop logistics and industrial properties in key logistics markets that serve greater Beijing, Shanghai, Guangzhou and selected markets in the mid-west of China.
It will develop a portfolio targeted at third party logistics and industrial tenants who service the growing domestic consumption and e-commerce markets, with plans to start investing once China’s market conditions stabilise after COVID-19.
“We have been exceptionally pleased with the resilience of our portfolio during COVID-19 which is testament to the strength of domestic consumption in China; a key focus for Logos,” said Daniel Cai, COO at Logos.
“Looking forward, we have identified an attractive pipeline for this venture and will be progressing with some strategic acquisitions over the coming months.”
The JV comes after three previous ventures undertaken by Logos and Ivanhoé Cambridge in China.
“The continued solid performance of our previous three China ventures and current market conditions makes this the right time for Ivanhoé Cambridge to further invest in this market with Logos,” said George Agethen, Ivanhoé Cambridge’s senior vice president for Asia-Pacific.
“The venture has been structured to capture opportunities as we cautiously emerge from the COVID-19 crisis and reinforces our positive views on the China and global logistics sector.”
The deal comes after Logos and real estate investment manager CBRE Global Investors raised RMB 5.5bn (US$786m) in the final closing of their CBRE LOGOS China Logistics Club fund earlier this month.
This week, warehouse investor and developer GLP raised RMB 15bn (US$2.1bn) in the final closing of its GLP China Income Fund I to support its capital recycling strategy in China.
Earlier this month, Chicago-headquartered LaSalle Investment Management raised US$681m for its first Chinese logistics-focused fund, LaSalle China Logistics Venture.
Macquarie Fund Advisers (together and through its affiliates, MIRA Real Estate) acted as exclusive financial adviser to LOGOS for the transaction.