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The acquisition follows the establishment of LOGOS Vietnam Logistics Venture last month, which has an initial forecast portfolio of approximately $350 million by gross asset value.

Render of LOGOS’ first development in Vietnam located in Bac Ninh province

Glenn Hughes, head of Vietnam, said that the company is pleased to have acquired its first development site, having spent the last two years assessing the local market .

“Our decision to invest in Vietnam Singapore Industrial Park (VSIP) Bac Ninh Phase 1 was reinforced by major occupiers having existing facilities in the park, including FM Logistic, Emergent Cold, LinFox, and DB Schenker,” Hughes said.

He believed the property is well suited to service the growing demand from international and local logistics operators within the greater Hanoi region and is confident that the company can set a new benchmark for the Vietnamese logistics market in terms of high-quality logistics buildings to meet this demand.

Located in VSIP in Bac Ninh province, the site offers immediate access to National Highway 1A and surrounding transport networks, and is 35 minutes from the Hanoi Central Business District and Nopi Bai International Airport, and 1.5 hours from Haiphong seaport.

The site is considered one of the key logistics locations in Hanoi and is strategically positioned for LOGOS’ customers.

Subject to relevant planning approvals, LOGOS proposes to develop the site on both a speculative and build-to-suit basis, delivering up to 80,000 square metres of high specification logistics facilities.

On completion, LOGOS Bac Ninh Logistics Estate will have an estimated end value of circa $70 million.

LOGOS is currently in discussion with a number of existing and new customers regarding this property.

The Vietnamese logistics market continues to experience strong growth driven by global trade wars, decentralisation of supply chains, and the natural evolution of the market.

Vietnam has led a successful response to the COVID-19 pandemic and is well-positioned to rebound for further growth. Occupier demand, driven by e-commerce and third-party logistics operators, remains solid as occupiers are starved of suitable logistics facilities to sustain the growth of their business operations. LOGOS’ Asia-Pacific portfolio comprises of 100 logistics estates across nine countries with assets under management of approximately $9.5 billion.

LOGOS counts some of the world’s largest fund managers as its shareholders, including ARA Asset Management, a leading Asia-Pacific real assets fund manager with a global reach, which took a majority stake in the company in March 2020.

LOGOS e-commerce hub and related logistics service facility in Singapore

This portfolio will be modern, high-quality logistics facilities across the key markets of greater Ho Chi Minh City, greater Hanoi, and greater Danang.

The LOGOS Vietnam Logistics Venture (LOGOS Vietnam) aims to establish a portfolio initially forecast at $350 million in gross asset value.

The new venture is the fourth one closed by Logos this year, with the group raising over $1 billion throughout the region despite the current market disruptions. Through this venture, Logos and its investment partner aim to establish a modern, quality portfolio of logistics facilities to support local and international customers’ growth across Vietnam.

LOGOS’ managing director and co-CEO Trent Iliffe said that the group’s move into Vietnam is an important step in its regional growth strategy driven by customers’ needs.

“We are pleased to be partnering with a leading global institutional investor as part of this move. 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 Southeast Asia,” said Iliffe.

LOGOS’ Southeast Asia managing director Stephen Hawkins added that after establishing its Southeast Asia business in 2016, the group has undertaken a targeted growth programme across the region from Singapore to Indonesia, Malaysia, and now Vietnam as it looks to support customers’ growth strategies across this fast-developing region.

“Vietnam’s strong underlying market fundamentals and the significant growth in e-commerce makes it an attractive market for investors and customers alike,” said Hawkins.

LOGOS entered the Vietnamese 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 Southeast Asia, Australia, and the Middle East as head of Vietnam to lead the group’s in-country strategy.

“The long-term potential of the Vietnamese 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 for e-commerce,” Glenn commented.

LOGOS has identified an attractive pipeline of development sites for this venture and will be progressing with strategic acquisitions over the coming months.

It is planned that LOGOS would be able to deliver a steady pipeline of speculative and built-to-suit logistics facilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.

LOGOS’ Asia-Pacific portfolio comprises of 100 logistics estates across nine countries with AUM of approximately $9.5 billion.

It counts some of the world’s largest fund managers as its shareholders, including ARA Asset Management, a leading Asia-Pacific real assets fund manager with a global reach, which took a majority stake in the company in March 2020. MIRA Real Estate acted as exclusive financial adviser to LOGOS for the venture.

The Hanoitimes – The establishment of this venture in the midst of the Covid-19 pandemic is testament to Vietnam’s exciting growth story, stated the firm’s senior executive.

Australia-based LOGOS, a logistics real estate operator, has established its first Vietnam venture with an initial forecast portfolio of around US$350 million by gross asset value, stated the group in a statement.

The venture aims to develop modern and high-quality logistics facilities across Vietnam.

The venture aims to develop modern and high-quality logistics facilities across the key markets in Ho Chi Minh City, Hanoi, Danang and their surroundings, supporting local and international customers’ growth across Vietnam, it said.

The new venture is the fourth venture closed by LOGOS this year, with the group raising over US$1 billion throughout the Southeast Asian region despite the current market disruptions.

“Our move into Vietnam is an important step in our regional growth strategy driven by customers’ needs,” stated 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, decentralization of supply chains and a natural evolution of this market,” he said.

“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 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 organizations across Southeast 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.

It is planned that LOGOS would be able to deliver a steady pipeline of speculative and build-to-suit logistics facilities for its customers in key logistics locations, being ready for occupation over the next 12 to 18 months.

Growing foreign investments, mainly in manufacturing and processing industries – both require a strong logistics function – and booming local consumption, have led to strong growth of Vietnam’s logistics sector.

The Hanoitimes – Fruit stores in Hanoi meet the requirements for food safety will be received logo from the local government, so that customers can identify and buy qualified products.

With the objective of developing civilized and modern fruit selling channels, in turn increases awareness and responsibilities of sellers and citizens in ensuring food safety, at the same time efficiently implement the instruction of the city on “Improve the leadership and instruction in ensuring pubic order and civilized urban area in Hanoi”, Hanoi People’s Committee has approved to implement the project “pilot managing fruit selling stores in Hanoi”.

As such, Hanoi will request related administrative agencies, districts and wards to increase cooperation in managing fruit stores in accordance to the law, with an aim to restore the order in controlling food safety and protect customers’ rights. At the same time, it is necessary to present the abuse of chemical preservation for fruits and its potential diseases to the customers’ health.

Specifically, the aim of project is to remove fruit selling points in streets and public places, with a view to maintain public order and civilized urban area; improve awareness, responsibilities of growers, sellers, customers and managers in ensuring food safety with regard to fruits; improve management and controlling fruit selling stores toward the objective of high quality and food safety. It is essential to built trust among the customers with regard to fruit products in the country, as well as in Hanoi, encouraging producing safe fruits, improving the competitiveness of local fruits, in turn contributes to the stabilization and economic development in the city.

Responsible agencies will check and review the operation status of fruit stores in Hanoi. Afterwards, they can develop the instruction plan to support sellers in finalizing and completing necessary documents and procedures to receive the certificate for food safety, verification with regard to the knowledge of food safety, and commitment to ensure food safety.

Until the end of 2018, fruit selling stores in Hanoi will control the origins, quality and conditions on food safety. Moreover, fruit selling points which are not qualified for food safety and public order requirements will be removed, especially in streets, public places, contributing to public order and civilized cities, traffic safety. All fruit selling stores which violate the law of business and food safety, especially in using illegal substances will be punished accordingly. Gradually all fruit selling stores will have the cashing machine, online payment and database system to improve the efficiency in management and business in food safety.

After having checked on all the fruit stores in Hanoi, the responsible agencies will issue logo for qualified fruit stores, as well as to disclose the list of fruit stores qualified for food safety to the public on media and newspaper, so that customers will be able to identify the right quality of the products. The project is aimed to maintain clean – green and beautiful streets, contributing to the image of modern and green Hanoi. Through removing fruit selling points in the streets, pedestrians will have space for walking and enjoy the city.

The Hanoitimes – Glenn Hughes, head of LOGOS Vietnam Logistics Venture, told Hanoitimes about his company’s opportunities and plan to contribute to the modernization of Vietnam’s logistics property sector.

How do you see the impacts of Covid-19 on the logistics property industry in Vietnam? Why did the company decide to establish the new Vietnam Venture in the midst of the Covid-19 pandemic?

Glenn Hughes, head of Logos Vietnam Logistics Venture

LOGOS spent a number of years assessing the viability for us to enter the Vietnam logistics property market. Given the long term economic fundamentals and growth potential in the Vietnam logistics market, combined with the current and future demand indicated by our customers, we determined there is now a significant opportunity for our company to enter Vietnam to deliver modern logistics solutions for our customers and for us to play an important role in modernizing the Vietnam logistics property sector.

We also recognize that Vietnam has led a successful response to the Covid-19 pandemic and is well positioned to rebound for future economic growth. Demand from our customers remains strong and is driven by expansion of e-commerce and expansion in manufacturing which are both showing signs of growth in Vietnam during the Covid-19 period. In this context, we look forward to delivering international quality modern and efficient logistics facilities to our customers over the next year and beyond.

What’s your comment on the scale and potential of the logistics property industry in Vietnam in comparison with other Southeast Asian countries?

Much of Southeast Asia, outside of Singapore, is an emerging market where logistics property sectors are expanding. So, in principle, most markets are evolving and growing at the same time. However, due to a number of locational aspects and structural changes in global supply chains, we believe that Vietnam may grow faster compared to other Southeast Asian economies over the medium term, and the logistics property industry is expected to grow strongly in Vietnam as the wider economic grows and as the logistics industry modernizes.

A e-commerce company’s warehouse in Vietnam. Photo: Tiki

How would the e-commerce industry impact the logistics and industrial property sectors in Vietnam?

We believe the current pandemic has propelled e-commerce five to 10 years ahead of where we would have been without Covid-19. There has been a significant increase in online sales in Vietnam and across the region and this long-term structural change in consumer behavior has significant impacts on supply chains, forcing our customers to look for longer term solutions to meet their customer demand in food, cold storage, pharmaceutical and across the whole supply chain.

Given this accelerated growth, we see e-commerce as a key driver of the growth and modernization in the Vietnam logistics industry, particularly given the importance that e-commerce operators place on technology-driven efficiencies which we can deliver.

As a foreign investor, what challenges do you think Vietnam’s property logistics industry has faced?

The need to secure good locations for logistics property near urban areas but with proximity to key ports and airports means that finding suitable land is a major challenge, particularly when there are ongoing regulatory and practical challenges for both government and private sector developers to bring forward new logistics land supply.

Sutong Science And Technology Park, Nantong, JS

Which criteria will the venture choose to acquire customers from the sectors of e-commerce, food and beverage, and cold storage in Vietnam?

We have a strong history of providing logistics property solutions for customers operating in e-commerce, food& beverage and cold storage. We intend to work with customers in Vietnam across all of these sectors as we develop our portfolio of modern high-quality facilities to meet their needs.

We will seek to work with both international and local customers who have demonstrated they have a good history of success and solid plans for future growth – including plans for adopting new technology in new modern facilities which will assist them to drive efficiency improvements.

What are your plans for the venture in 2021?

In Vietnam we are adopting a business plan based on building up a strong portfolio of modern logistics facilities to serve the Greater Hanoi – Hai Phong corridor and the Greater Ho Chi Minh City -Vung Tau corridor and this will continue to be our priority in 2021. During 2021 we also anticipate increasing our focus on seeking project opportunities to serve the Greater Danang/Central Vietnam area.

We look forward to actively advancing several construction projects during 2021 to match the demands of our customers, as well as confirming we have secured new lands for additional future projects.

Thank you for this interview with Hanoitimes!