AlternativesJanuary 4, 2021

CPPIB Invests $200 Million into Indonesia Logistics Joint Venture

Two partnerships with logistics real estate firm LOGOS will bring up to $1 billion of warehouses in the greater Jakarta area.

Reported by Sarah Min

The Canada Pension Plan Investment Board (CPPIB) will invest $200 million into a second joint venture with logistics real estate firm LOGOS to develop assets in Indonesia.

A portfolio of third-party logistics services, data centers, and industrial warehouses will be funded by the allocator-operator partnership in the greater Jakarta area, CPPIB said this week.

“One of the key investment themes for CPP Investments has been Asia’s growing middle class and domestic consumption,” Jimmy Phua, managing director and head of Asian real estate investments at CPPIB, said in a statement. “We are pleased to be furthering our partnership with LOGOS and strengthening our position in Indonesia’s logistics market.”

CPPIB is expanding further into warehouses to meet growing demand for deliveries for online shoppers. The Canadian pension fund previously invested with LOGOS in 2017, when it also sought to acquire and develop logistics assets in the market.

Several logistics properties were also included in the initial venture, including Cibitung Logistics Hub, Cikarang Logistics Park, Cileungsi Distribution Centre, and Metrolink Logistics Hub.

LOGOS, which has about $10.2 billion in assets in its Asia Pacific portfolio, said it already has several assets in mind for its newest venture that it will build and acquire over the next year. Through both ventures, it will develop up to $1 billion logistics assets over the coming years, it said.