In the first phase with 350-million USD funding, Logos and its immediate partners aim to develop real estate logistics in major centers such as Ho Chi Minh City, Hanoi and Da Nang.
On August 19, Real Estate Group Logos, a member of the ARA Fund Management Company, based in Sydney, said it had established its first joint venture in Vietnam: Logos Vietnam Logistics Venture, source from DealStreet Asia said.
Logos Vietnam Logistics Venture is the 4th joint venture of Logos in 2020 after raising more than 1 billion USD across the region. Partner is a global investor, but Logos did not specify his identity. It is known that the two sides strategically plan a portfolio of logistics facilities throughout the territory of Vietnam. In the first phase of about 350 million USD, Logos and its immediate partners aim to develop real estate logistics in major centers such as Ho Chi Minh City, Hanoi and Da Nang.
Next time, the joint venture will conduct strategic M&A deals with the goal that after only 12-18 months, Logos can provide a stable amount of logistics facilities to customers at key locations.
Representative of Logos, Mr. Iliffe continued to emphasize that entering the Vietnamese market is an important step in the growth strategy in the region. “Establishing a joint venture in the midst of the Covid-19 epidemic is a testament to Vietnam’s new growth potential”.
In addition, Mr. Stephen Hawakins, CEO of Logos stated that the remarkable development of e-commerce has made Vietnam become an attractive market for investors and customers.
It is known that the demand for real estate in the industrial park is expected to increase strongly as the expected FDI continues to pour strongly into Vietnam. Not to mention, the capital flow moved from China to Vietnam before the trade war and the latest is the Covid-19 translation, which is considered a potential market in the future.
By the end of 2019, Becamex IDC and Singapore leading private investment fund Warburg Pincus also announced that they would increase their charter capital at the BW Industrial joint venture by 2,370 billion VND to 4,916 billion VND (214 million USD), of which Becamex poured an additional 705. VND billion to maintain a 30% ownership rate in this joint venture.
Established in May 2018, BW Industrial has an ambition to become a leading enterprise in industrial real estate, with a focus on factory rental, logistics. Logos’ new venture will compete directly with this giant, Logos representative also confirmed the game soon in the previous announcement.
By the end of 2019, BW Industrial has developed more than 10 different projects on a total land fund of 230 hectares in six provinces, including Bac Ninh, Hai Duong, Hai Phong, Binh Duong, Dong Nai, Ho Chi Minh City. “The target of BW land bank will increase 3-4 times in the next 3-5 years,” said C.K Tong, general director of BW Industrial. In particular, BW Industrial is not only a real estate developer in the industrial park but also a provider of logistics and logistics platforms for businesses in many different fields.
Coming back to Logos, it is worth mentioning that after just 1 week, Logos quickly managed to arrange finance and proceed to invade Vietnam. On August 10, 2020, also according to the source of DealStreet Asia, Logos announced that it was calling about 400 million USD for its strategy in Vietnam and the expected figure in Korea was up to 800 million USD. Previously, Logos has raised capital from strategic investors such as Canada Pension Plan Investment Board (CPPIB), Ivanhoe Cambridge … for plans to expand into Singapore and Indonesia markets.
Logos also appointed Glenn Hughes, former PwC Vietnam Chief Capital Officer, as head in Vietnam in January 2020. In the future, LOGOS will focus on acquiring and developing brands in the logistics sector, with a strong focus on core segments of e-commerce, food and cold storage. In it, LOGOS states: “We will stay ahead of our customers’ future needs”.
It is known that Logos was founded by John Marsh and Iliffe in 2010. The business was later acquired by ARA in March 2020 and specializes in industrial real estate (including logistics real estate). . Logos’ Asia-Pacific portfolio has 100 logistics properties in 9 countries, total assets under management of about $ 9.5 billion.