SINGAPORE, March 13 Canada's two biggest pension
funds have agreed to partner with LOGOS, a real estate logistics
operator, to invest in warehouses in Singapore and Indonesia,
betting on demand from the rise of e-commerce and a burgeoning
middle class in southeast Asia.
Canada Pension Plan Investment Board (CPPIB), the top
pension fund of the country, said in a statement it will
initially commit S$200 million ($142 million) for an about 48
percent stake in LOGOS Singapore Logistics Venture. It will also
commit $100 million for a stake of about 48 percent in LOGOS
Indonesia Logistics Venture.
CPPIB and Ivanhoé Cambridge, which is the real estate arm of
Canada's second-largest pension fund manager Caisse de depot et
placement du Quebec, will be equal partners in both joint
ventures, the statement said.
LOGOS, which operates in Australia, China, Indonesia and
Singapore, will hold the remaining stake in the ventures.
CPPIB said the deals would pave the way for its first direct
real estate investments in Singapore and Indonesia.
Private equity firms and institutional investors are pouring
billions of dollars into warehousing and logistics investments
in Asia in recent years betting on a boom in demand from
e-commerce in the region.
Warburg Pincus, Blackstone Group LP and Hopu
Investments were among bidders short-listed to present a
potential offer for Singapore-listed Global Logistic Properties
, sources told Reuters late last month.
And in January, Warburg Pincus-backed warehouse operator
e-Shang Redwood agreed to buy an 80 percent indirect stake in
the manager of Singapore-listed Cambridge Industrial Trust (CIT)
($1 = 1.4116 Singapore dollars)
(Reporting by Aradhana Aravindan; Editing by Muralikumar