- Will meet rising demand in Southeast Asia for warehouses including built-in automation that can address more sophisticated logistics requirements cost-effectively
- Expected to scale funds under management to S$1 billion
CapitaLand Investment (CLI), Ally Logistic Property (ALP) and Pruksa Holding PCL (PSH) are pleased to announce a strategic partnership to establish a S$1 billion CapitaLand SEA Logistics Fund (CSLF). CLI, ALP and PSH have committed an initial equity investment of S$270 million with an option to increase their investment up to S$540 million, and a target to achieve assets under management of S$1 billion.
CLI, ALP and PSH will contribute their respective strengths and network in this partnership to grow CSLF’s logistics portfolio in Southeast Asia. Market demand for Grade ‘A’ warehouse spaces has expanded significantly with the ongoing relocation of companies and manufacturing activities to the Southeast Asia region in response to global supply chain disruptions. There is currently a lack of quality warehouse assets in this region, and the overall supply chain is fragmented as industry players are not well-integrated. With the rapid rise in ecommerce and omnichannel retail activities, businesses are also seeking innovative and advanced logistics and warehouse solutions that are scalable to shorten the supply chain and increase their competitiveness. Next-generation smart warehouses which embed automation, robotics and digitisation help overcome labour-related challenges and logistics complexities, optimise land and space utilisation while enabling faster and more efficient inventory movement. These structural shifts and the current lack of a strong logistics infrastructure present favourable opportunities for investments.
Under the strategic partnership, CLI will be CSLF’s fund manager, leveraging its well-established global real estate platform, fund management expertise and local operating presence to provide the fund a competitive advantage in deal sourcing, investment, and execution. Drawing on PSH’s extensive market knowledge and proven integrated development experience in Thailand and ALP’s deep operational expertise in the real estate and logistics sector, CSLF offers a cross-platform approach that provides customers end-to-end holistic and smart warehousing solutions to enhance productivity and maximise returns. CSLF will benefit from ALP’s state-of-the-art smart warehousing solutions such as robotic equipment and space planning, automation system integration and optimisation, as well as data analytics to deliver logistics automation and infrastructure to serve the market more competitively. This combination of complementary expertise is a key differentiating factor for CSLF to stand out as a leading investment manager and operator in the advanced logistics sector.
With more than 50 years of collective experience in the industry, CLI, ALP and PSH are well-positioned to identify and capitalise on attractive logistics infrastructure investment opportunities in the growing Southeast Asia market. The combined investing and operating expertise of the partnership is set to drive value creation for CSLF to maximise its investment performance.
Uten Lohachitpitaks, Group CEO of Pruksa Holding PCL, said: “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. 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.”
Charlie Chang, CEO of Ally Logistic Property, echoed with excitement: “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. 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.”
Patricia Goh, Managing Director, SEA of Capitaland Investment, said, “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. 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.”