Sime Darby Property has entered into an agreement with LOGOS Property Group Limited into forming a new joint venture called Industrial Joint Venture in developing new business in logistics.
LOGOS SE is a subsidiary of LOGOS Property is an Asia Pacific logistics specialist that manages all aspect of logistics real estate, including investment management, sourcing land or facilities and undertaking development and asset management, on behalf of some of the world’s leading global real estate investors. With presence in 10 countries across the Asia Pacific region, LOGOS Property has assets under management of over US$17 billion, comprising over 8.9 million square meters of property owned and under development across 26 ventures
The principal activities of LOGOS SE is property fund management (including real estate investment trust management and direct property fund management) with commercial and industrial real estate management as its secondary activity. As for the joint venture, a seed Fund is intended to be structured as a Singapore limited
partnership targeting total capital commitments of equivalent to US$200 million or approximately RM850 million from accredited and institutional investors
For this purpose, Sime Darby Property has allocated a 177-acre site within its prime Bandar Bukit Raja township in Klang for this joint venture. Main focus for the fund will be to develop and invest in build-to-suit to lease or sell assets, primarily for clients in the logistics sector.
Both parties will jointly lead any fund raising efforts and work together to formulate strategy, business plan and financial model as well as to market the industrial and logistics assets to prospective tenants. They will also work together for the building, design and overseeing of the construction of the development and managing each industrial & logistic facilities.
The Joint Venture is expected to leverage on the synergies between both entities; in particular Sime Darby Property’s presence, track record in the Malaysian property market and extensive land bank in strategic areas earmarked for industrial development and LOGOS Property’s specialist experience in developing property solutions in the logistics sector, to create a fund platform that taps on global investors’ appetite for logistics assets which are seen as defensive with potential for growth.
This is part of Sime Darby Property’s ongoing efforts to diversify its business and broaden income streams beyond property development towards becoming a sustainable real estate development company by 2025.