Initial $270 million equity investment with the potential to grow their stake to $540 million
CapitaLand Investment (CLI), Ally Logistic Property (ALP) and Pruksa Holding PCL (PSH) have signed an agreement of strategic partnership on December 19th to establish an CapitaLand SEA Logistics Fund (CSLF).
Each participant has committed to for an equity initial commitment of 270 million, with the option of increasing the amount of their investment 540 to $600 million. The fund has a goal to reach $1 Billion.
Each partner will bring their strengths and networks in this partnership in order to increase the portfolio of logistics for the fund across Southeast Asia.
According CLI, the demand for Grade “A” warehouses has grown with the continuous relocation of companies and manufacturing operations throughout the Southeast Asia (SEA) region in response to global disruptions in supply chain.
In addition the region is afflicted by the absence of warehouses that are of high quality and the supply chain is a mess since the players in the industry are not integrated.
As part of the collaboration, CLI will be the fund manager. It will leverage its knowledge of its well-established worldwide real estate platforms, its expertise as a fund administrator and its local presence in operation to give the fund a the “competitive edge” in deal finding, investment, and execution.
PSH will offer its vast market expertise and knowledge of integration in development Thailand. ALP will offer its extensive operational know-how in the logistics and real estate sector.
“At Pruksa, our mission is to improve the lives of people by offering a ‘live healthy and remain well’ solution. We’re committed to making a an impact that lasts on the communities we support. Our collaboration in partnership with CLI along with ALP to create the intelligent logistic infrastructure that will elevate the value chain of logistics in Southeast Asia into the future of highly innovative solutions that are lower costs, more efficient and faster service flow that allows clients to accomplish more with less resources.” Uten Lohachitpitaks, group director for Pruksa Holding PCL.
“This investment is the first step towards expansion into the industry logistics and real estate sectors and bolstering our strategy to diversify our portfolio and increase stable recurring income. The collaboration between CLI as well as ALP is an important step to extend and expand our investments into the logistics infrastructure sector with smart technology to other countries within this region.” Lohachitpitaks.
“We are incredibly proud to be a part of this partnership that includes CLI along with PSH. We appreciate their dedication to the development of their partnership throughout that has allowed us to make great progress through times of uncertainty and to continue to innovate the logistics, transportation and technology fields,” says Charlie Chang the Chief Executive Officer of Ally Logistic Property.
“We believe that our expertise in the field and knowledge of developing smart logistics infrastructures to aid in the growth of businesses in sustainable and long-term development, will prove important and vital to the value chain of logistics in Southeast Asia in the coming years. We are looking ahead to working together with strategic partners to influence the direction of this industry and drive the forward movement. Together the industry will develop and redefine the field, and we’re certain that our contribution will play a an important role within the world economy.” Chang adds.
“CLI strongly believes in the long-term potential for growth for the intelligent logistics infrastructure, which is an alternative investment that can profit from the favorable economic conditions within Southeast Asia. This partnership will help strengthen our global logistics infrastructure that can cater to the requirements of a wide range of users,” Patricia Goh, managing director, SEA of CLI.
“We are thrilled to be able to grow our capital partners ‘ network by partnering with established family offices and corporations via this funds. This platform is also expected to help CLI’s funds under administration and fees-related profits and will expand the pipeline of assets we have for our listed and private fund vehicles. As a world-class real estate investment management company, we will continue to search for opportunities that can provide long-term returns to our investors, and also increase our existing circle of financial partners greater access to markets with high growth that are located in Southeast Asia,” Goh adds.