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CapitaLand Investment establishes new logistics fund with partners to develop smart logistics infrastructure

Felicia Tan
Felicia Tan12/19/2022 06:40 PM GMT+08  • 4 min read
CapitaLand Investment establishes new logistics fund with partners to develop smart logistics infrastructure
The fund has a target of $1 billion. Photo: CLI
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CapitaLand Investment (CLI), Ally Logistic Property (ALP) and Pruksa Holding PCL (PSH) have entered into a strategic partnership on Dec 19 to establish a CapitaLand SEA Logistics Fund (CSLF).

Each partner has committed an initial equity investment of $270 million with an option to increase their investment up to $540 million. The fund has a target of $1 billion.

Each partner will also contribute their respective strengths and network in this partnership to grow the fund’s logistics portfolio in Southeast Asia.

According to CLI, the market demand for Grade ‘A’ warehouse spaces has expanded with the ongoing relocation of companies and manufacturing activities in the Southeast Asia (SEA) region on the back of global supply chain disruptions.

Furthermore, the region suffers from a lack of quality warehouses; the overall supply chain is fragmented as industry players are not well-integrated.

Under the partnership, CLI will be the fund manager. It will harness its experience from its established global real estate platform, expertise as a fund manager and its local operating presence to provide the fund with a “competitive advantage” in deal sourcing, investment and execution.

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PSH will provide its extensive market knowledge and experience with integrated development in Thailand. ALP will provide its deep operational expertise in the real estate and logistics sector.

“At Pruksa, our mission is to enrich people’s lives with a ‘live well and stay well’ integrated solution. We are committed to create a positive and lasting impact on the communities we serve. Our partnership with CLI and ALP to develop the smart logistics infrastructure as a service will take Southeast Asia’s logistics value chain to the next level of innovative solutions, offering more cost efficient, less time consuming and enhanced product flow to enable customers to do more with less resources,” Uten Lohachitpitaks, group CEO of Pruksa Holding PCL.

“This investment is our first step in expanding into the industrial real estate and logistics sector, reinforcing our strategy to diversify and grow stable recurring income. The partnership with CLI and ALP is also a step forward to further expand our investment in the smart logistics infrastructure business to other countries in the region,” Lohachitpitaks.

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“We are proud to be part of this alliance with CLI and PSH. We appreciate their commitment to innovation throughout our partnership, which has enabled us to achieve great success during times of uncertainties and continue to re-engineer the warehousing, transportation and technology sectors,” says Charlie Chang, CEO of Ally Logistic Property.

“We are confident that our industry knowledge and expertise in expanding smart logistics infrastructure to assist corporate growth and sustainable development will be valuable and crucial to Southeast Asia’s logistics value chain in the future. We look forward to working with our overseas strategic partners to shape the direction of the industry and continue to drive progress. Together, we will continue to evolve and redefine the industry, and we are certain that our contributions will play a vital role in the global economy,” Chang adds.

“CLI firmly believes in the long-term growth potential of the smart logistics infrastructure as a strong alternative asset class that will benefit from the favourable economic fundamentals in Southeast Asia. The partnership will strengthen our global logistics ecosystem catering to requirements from a full spectrum of end-users,” Patricia Goh, managing director, SEA of CLI.

“We are pleased to be able to expand our capital partners network with established corporates and family offices through this fund. 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. As a global real estate investment manager, we will continue to source for opportunities that will deliver sustainable returns for our investors and provide our growing network of capital partners with enhanced access to high-growth markets in Southeast Asia,” Goh adds.

Shares in CLI closed 3 cents higher or 0.83% up at $3.65 on Dec 19.

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