Hongkong Land is embarking on its first ever logistics project by teaming up with its Indonesian sister firm PT Astra International and warehouse specialist Logos Property in a joint venture to develop and manage warehouses in Southeast Asia’s largest economy.
The new platform will initially focus on projects in the Greater Jakarta area, with the two Jardine Matheson-controlled firms participating through their existing PT Astra Land Indonesia joint venture, the three companies said in a joint statement.
“The establishment of this joint venture with Logos demonstrates our confidence in the logistics sector,” Astra president director Djony Bunarto Tjondro said. “We wish to expand the availability of modern warehouse facilities to support the logistics sector in Indonesia, and to contribute to Indonesia’s national economic growth.”
Widely known for its portfolio of commercial and residential properties in Hong Kong such as Jardine House and the Exchange Square complex in Central, as well as its growing presence in mainland China and Singapore, the newly-formed JV marks Hongkong Land’s first step into Asia’s logistics industry as it joins a growing crowd of investor chasing e-commerce fuelled returns.
Hongkong Land Going Beyond Homes, Offices
The deal comes nearly five years after Logos first entered Southeast Asia by establishing a joint venture with Ivanhoe Cambridge and CPPIB which included projects in both Singapore and Indonesia, with the company, which is now a unit of ESR Group, continuing to expand its presence in the region through new partnerships.
“The JV will leverage the synergies of both companies; Astra Land Indonesia’s track record in the Indonesian property market and Logos’ strong experience in developing sustainable, integrated logistics solutions for international and local customers,” said Stephen Hawkins, Logos’ chairman of Southeast Asia.
Logos Eyes More Sheds in Indonesia
For Logos, the Jardine JV adds more backing for an Indonesia expansion which already received US$200 million in fresh funding from a renewed partnership with CPPIB one year ago.
The firm founded by Trent Iliffe and John Marsh has also been expanding its footprint in other Southeast Asian nations. Including teaming up with Sime Darby last September to launch a US$200-million Malaysia platform.
In August 2020 Logos entered the Vietnam market with a US$350 million joint venture with an unnamed global institutional investor to build a portfolio of warehouses across Ho Chi Minh City, Hanoi and the Greater Danang area.
Hawkins added that the venture would help Indonesia meet growing demand for warehouses in a country, where the e-commerce market grew by nearly 50 percent in 2020 from the previous year to reach US$21 billion in value, according to a joint report by Bain & Company, Google, and Temasek Holdings.
The developer’s properties span Hong Kong, where it is the single largest landlord in Central district, mainland China, Thailand, Singapore, Malaysia, Vietnam and the Philippines.