CapitaLand Investment in partnership to set up S$1b logistics fund
Tessa Oh
CAPITALAND Investment (CLI) has partnered with a Thai real estate developer Pruksa Holding PCL (PSH) and Taiwanese logistics property developer Ally Logistic Property (ALP) to set up a S$1 billion logistics fund.
The three companies have committed an initial investment of S$270 million to the CapitaLand Sea Logistics Fund (CSLF), with an option to increase their investment up to S$540 million, they said in a joint statement on Monday (Dec 19). They target to achieve assets under management of S$1 billion.
CLI will be the fund’s manager, leveraging its well-established global real estate platform, fund management expertise and local operating presence to “provide the fund a competitive advantage in deal sourcing, investment and execution”, said the statement.
Meanwhile, PSH will lend its extensive market knowledge and “proven integrated development experience” in Thailand, while ALP will provide deep operational expertise in the real estate and logistics sector.
The fund offers a “cross-platform approach that provides customers end-to-end holistic and smart warehousing solutions to enhance productivity and maximise returns”, said the companies.
It will also benefit from ALP’s smart warehousing solutions, such as robotic equipment and space planning, to serve the market more competitively.
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“This combination of complementary expertise is the key differentiating factor for CSLF to stand out as a leading investment manager and operator in the advanced logistics sector,” they added.
Market demand for Grade A warehouse spaces has expanded significantly as companies relocate their manufacturing activities to South-east Asia in response to global supply chain disruptions, noted the three companies in the statement. “There is currently a lack of quality warehouse assets in the region, and the overall supply chain is fragmented as industry players are not well-integrated.”
In addition, with the rapid rise in e-commerce and omnichannel retail activities, businesses are also seeking “innovative and advance logistics and warehouse solutions that are scalable to shorten the supply chain and increase their competitiveness”, they said.
With a more than combined 50 years of experience in the industry, the three companies seek to leverage their investing and expertise to drive value creation for CSLF to maximise investment performance.
“CLI firmly believes in the long-term growth potential of the smart logistics and infrastructure as a strong alternative asset class that will benefit from the favourable economic fundamentals of South-east Asia,” said Patricia Goh, managing director of CLI South-east Asia.
“The platform will also contribute to CLI’s funds under management and fee-related earnings and expand the asset pipeline for our private and listed fund vehicles,” Goh added.
Shares of CLI closed 0.8 per cent or S$0.03 higher at S$3.65 on Monday.
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