Canada Pension Plan Investment Board (CPP Investments) and logistics real estate specialist LOGOS have established a new Indonesia joint venture for the development of logistics facilities in Greater Jakarta.
CPP Investments will invest US$200 million into the joint venture, which will develop a diversified portfolio of facilities targeted at third party logistics (3PL), data centre and industrial tenants.
“One of the key investment themes for CPP Investments has been Asia’s growing middle class and domestic consumption,” said Jimmy Phua, Managing Director and Head of Real Estate Investments, Asia, CPP Investments. “The growth in Indonesia’s 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.”
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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 logistics properties in this market. The initial venture includes a number of logistics properties: Metrolink Logistics Hub, Cikarang Logistics Park, Cibitung Logistics Hub and Cileungsi Distribution Centre.
“We are seeing growing demand from both multi-national and domestic customers for high-quality logistics space in Indonesia, which is underpinned by the region’s economic drivers of ecommerce, manufacturing and diversification to decentralised supply chains,” said Stephen Hawkins, LOGOS’ Managing Director. “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 US$1 billion of high-quality logistics facilities to this market over the coming years.”
