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.