CPPIB, CDPQ form Southeast Asia logistics partnership

According to a statement, CPPIB will initially commit S$200 million ($141.4 million) for a 48% stake in a Singapore-based arm of Logos with the aim of seeding two fully-leased warehouse facilities as well as one development opportunity. CPPIB will likewise contribute $100 million to support a pipeline of similar projects via a 48% position in an Indonesia-based Logos entity.

CPPIB and CDPQ will be equal partners in both ventures, with Logos holding the remaining majority stakes as operating partner. It represents CPPIB’s first direct real estate investments in Singapore and Indonesia, and will build on a similar logistics play previously made by the organization alongside Goodman Group in China.  

“The logistics sector in Southeast Asia continues to grow as a result of the burgeoning middle class and the rise of e-commerce, and presents an excellent opportunity for a long-term investor like CPPIB,” said Jimmy Phua, managing director and head of Asia real estate investments for CPPIB.

The joint venture extends a recent spate of logistics activity across Asia, including a number of private equity buyout offers for Singapore-listed and China-focused warehouse operator Global Logistic Properties. Both CPPIB and CDPQ demonstrated an appetite for the sector as recently as last week with a combined $337 million commitment to India’s Kotak Mahindra Bank, a financial institution with a strong focus on related infrastructure investments.

CDPQ will invest Logos via its real estate unit, Ivanhoe Cambridge, which previously partnered with the company in a Chinese warehouse development. Ivanhoe held almost C$56 billion ($41.6 billion) in assets at the end of 2016.

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• Topics
• Southeast Asia
• Infrastructure
• Support services
• Expansion
• Canada Pension Plan Investment Board (CPPIB)
• Caisse de depot et placement du Quebec (CDPQ)
• Singapore
• Indonesia
• Logistics
• Real estate