Asia Pacific based logistics real estate investor LOGOS has formed a joint venture with a global institutional investor in Vietnam to develop logistics facilities across the key markets of Greater Ho Chi Minh, Greater Hanoi and Greater Danang.
The LOGOS Vietnam Logistics Venture aims to establish an initial forecast portfolio of approximately US$350 million by gross asset value.
The new joint venture is the fourth venture closed by LOGOS this year, with the Group raising over US$1 billion throughout the region despite the current market disruptions. Through this venture, LOGOS and its investment partner aims to establish a modern, quality portfolio of logistics facilities to support local and international customers’ growth across Vietnam.
“Our move into Vietnam is an important step in our regional growth strategy driven by customers’ needs and we are pleased to be partnering with a leading global institutional investor as part of this move,” said LOGOS’ Managing Director and Co-CEO, Trent Iliffe.
“Being able to establish this new venture in the midst of the COVID-19 pandemic is testament to Vietnam’s exciting growth story, which is driven by the global trade wars, decentralisation of supply chains and a natural evolution of this market, and LOGOS’ proven track record across South East Asia,” he added.
‘Vietnam’s strong underlying market fundamentals and the significant growth in ecommerce makes it an attractive market for investors and customers alike.’
LOGOS’ Managing Director, Stephen Hawkins, added: “After establishing our South East Asia business in 2016, we have undertaken a targeted growth program across the region from Singapore, to Indonesia, Malaysia and now Vietnam as we look to support our customers’ growth strategies across this fast developing region.
“Vietnam’s strong underlying market fundamentals and the significant growth in ecommerce makes it an attractive market for investors and customers alike,” he said.
LOGOS entered the Vietnam market earlier this year with the appointment of Glenn Hughes, a real estate and infrastructure specialist who has worked in both private and government sector organisations across South East Asia, Australia and the Middle East, as Head of Vietnam to lead the Group’s in-country strategy.
“The long-term potential of the Vietnam logistics market is supported by strong tailwinds, as companies seek to diversify their supply chains across multiple countries and further invest in technology within their facilities to meet the growing demand of ecommerce,” Glenn commented.