LOGOS completes capital raising for $5b logistics portfolio

LOGOS has announced an additional equity commitment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for its flagship LOGOS Australian Logistics Venture (LALV) at an undisclosed amount.

The increased commitment will provide LALV with enough investment capacity to expand its portfolio to a gross asset value of more than $5 billion.

As of writing, LALV’s portfolio consists of nine, large multi-tenanted logistics estates with a total end value of $3.7 billion.

The portfolio also includes a major stake in the Qantas Sydney Airport Precinct– a 14-hectare land parcel in Mascot that was recently acquired by LOGOS in a consortium with the ADIA and AustralianSuper for $802 million.

The high-profile acquisition represents the last available scalable logistics and commercial development sites in the coveted South Sydney market.

Sean Singh, LOGOS’ Head of Funds Management in Australia and New Zealand, said they are very pleased to extend their relationship with the Middle Eastern sovereign wealth fund, following a very successful initial investment period.

“This has seen LALV deliver strong returns while building one of Australia’s highest quality logistics portfolios, benefitting from LOGOS’ significant development pipeline and leveraging its tenant customer relationships in the Asia-Pacific region,” Singh said.

“The continued growth of LALV demonstrates LOGOS’ position in the Asia-Pacific region as an investment manager of choice,” he said.

LALV was established by LOGOS and a wholly-owned subsidiary of ADIA in November 2014, with the primary strategy of acquiring and developing prime logistics assets in Australia.

Over the last seven years, all the assets in the portfolio have been developed by LALV, which includes logistics estates at Heathwood in Brisbane and Marsden Park in Western Sydney.

The portfolio has been leased to high quality tenant customers, such as Woolworths, DHL, Toll Transport, Asahi Beverages, Hilton
Foods and H&M, with an average lease expiry of 9.3 years.

With the venture’s additional investment capacity, LOGOS’ assets under management in Australia and New Zealand have increased to over $14.3 billion.