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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.

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.

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.

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