JAKARTA (TheInsiderStories) – Canada Pension Plan Investment Board and Australia-based logistics real estate specialist, LOGOS, established a new Indonesia venture to develop modern logistics facilities in Greater Jakarta, the company announced yesterday. The agency will invest US$200 million into the joint venture.
“The growth in Indonesia’ e-commerce market has driven the demand for modern logistics facilities. We are pleased to be furthering our partnership with LOGOS and strengthening our position in Indonesia’s logistics market,” said aid Jimmy Phua, Managing Director and Head of Real Estate Investments, Asia, CPP Investments in an official statement.
He adds, this is the second joint venture between CPP Investments and LOGOS in Indonesia, with the first launched in 2017 in partnership with another international investor to acquire modern logistics properties in the country. The initial venture included Metrolink Logistics Hub, Cikarang Logistics Park, Cibitung Logistics Hub and Cileungsi Distribution Centre.
Stephen Hawkins, LOGOS’ managing director commented, “We are very pleased to be working with a long-standing partner in CPP Investments to meet this demand and, through both ventures, deliver up to $1 billion of high-quality logistics facilities to this market over the coming years.”
Last December, LOGOS and International Finance Corporation (IFC) has signed a loans agreement up to $120 million to build two logistics estates in the greater Jakarta area. Both estates—LOGOS Cikarang Logistics Park and LOGOS KLOG Cibitung Logistics Hub—to comply with IFC’ green-building standards to reduce greenhouse-gas emissions during construction and operation.
Indonesia is home to an expanding middle class and rapid urbanization, both factors that are contributing to a boom in e-commerce that has the sector on track to be worth $124 billion by 2025. Retailers and e-commerce players are, however, faced with challenges due to Indonesia’ archipelagic geography and the fragmented and nascent logistics sector.
As a business enabling infrastructure, warehouses play a key role in attracting foreign direct investment from multinational companies. LOGOS has identified a strong pipeline of opportunities for this new venture and will look to execute on this over the next 12 months. Its Asia Pacific portfolio comprises 100 logistics estates across nine countries with AUM of approximately $10.2 billion.
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