Canada Pension Plan Investment Board, Toronto, and logistics real estate boutique LOGOS Group announced the establishment of their second joint venture focused on the development of logistics facilities for the greater Jakarta region of Indonesia.
CPPIB, which managed an investment portfolio of C$456.7 billion ($341.3 billion) as of Sept. 30, will invest $200 million to take a 90% stake in the joint venture, a Hong Kong-based spokeswoman for the Canadian pension fund said Monday in an email. Sydney-based LOGOS will hold the remaining 10%.
In March 2017, CPPIB announced it would invest $100 million to take a roughly 48% stake in its first Jakarta-focused logistics joint venture with LOGOS. Ivanhoe Cambridge, the real estate arm of Caisse de Depot et Placement du Quebec, took an equal stake 48% stake. Quebec-based CDPQ's investment portfolio was valued at C$333 billion as of June 30.
A CPPIB news release Monday said the two joint ventures would look to deliver "up to $1 billion of high quality logistics facilities to this market over the coming years." That $1 billion figure includes leverage of roughly 50%.
LOGOS's Asia-Pacific focused logistics portfolio is comprised of 100 facilities in nine countries with combined assets under management of roughly $10.2 billion.
The growth of e-commerce in Indonesia was cited in the news release as a force powering demand for logistics facilities in the country by Jimmy Phua, Hong Kong-based managing director and head of real estate investments, Asia, with CPPIB and Stephen Hawkins, a Singapore-based managing director with LOGOS.