With partners, CapitaLand Investment creates a new logistics fund to build up smart logistics infrastructure

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CapitaLand Investment (CLI), Ally Logistic Property (ALP) and Pruksa Holding PCL (PSH) have signed an alliance on December 19th to establish an CapitaLand SEA Logistics Fund (CSLF).

Each of the partners has committed for an equity initial commitment of 270 million. They have the option of increasing the amount of their investment 540 to $600 million. The fund is aiming for a total to reach $1 Billion.

Each partner will contribute their own strengths and networks in this collaboration to expand the logistics portfolio of the fund across Southeast Asia.

According CLI, the demand for Grade “A” warehouses has grown with the continuous relocation of companies and manufacturing facilities within the Southeast Asia (SEA) region in response to global disruptions in supply chain.

Additionally the region is suffering from the absence of warehouses that are of high quality as well as the supply chain is scattered since the players in the industry are not integrated.

In the new agreement, CLI will be the fund manager. It will leverage its knowledge of its well-established international real estate network, its expertise as a fund administrator and its local presence in operation to give the fund a an “competitive advantages” in deal finding, investment, and execution.

PSH will offer its vast market expertise and knowledge of integration in development Thailand. ALP will provide its vast operational know-how in the logistics and real estate sector.

“At Pruksa, our mission is to enhance the lives of our customers by providing a ‘live well and remain well’ solution. We’re determined to make a an impact lasting and positive on the communities we support. Our collaboration together with CLI along with ALP to build the intelligent logistical infrastructure-as-a-service will bring the logistics value chain in Southeast Asia up to the highest level ingenuity solutions that are lower costs, less time-consuming, and improved products that allow customers to achieve more with less resources.” Uten Lohachitpitaks, group director at Pruksa Holding PCL.

“This investment is our first step toward growing into the industrial real estate and logistics industry and bolstering our strategy to diversify and create stable income. The collaboration between CLI along with ALP is also an opportunity to extend investments in the business of smart logistics infrastructure to other countries within this region.” Lohachitpitaks.

“We are extremely proud to be a part of this partnership together with CLI along with PSH. We appreciate their dedication to innovative thinking throughout our partnership which has allowed us to have great success through times of uncertainty and continues to reinvent the logistics, transportation and technology fields,” says Charlie Chang the chief executive officer of Ally Logistic Property.

“We believe that our expertise in the field and knowledge of building a smart logistics infrastructure to support the growth of businesses as well as sustainable growth will prove essential to the value chain of logistics in Southeast Asia in the coming years. We are looking ahead to working together with strategic partners to influence the future direction of the industry and drive forward. Together the industry will grow and reinvent the industry and we’re confident that our efforts will play crucial roles for the economy globally.” Chang adds.

“CLI strongly believes in the long-term potential for growth in the future of smart logistic infrastructures as an alternative to traditional assets that can benefit from the favorable economic environment that are prevailing in Southeast Asia. This partnership will help strengthen our global logistics infrastructure that can cater to the requirements of a wide range of users,” Patricia Goh, managing director, SEA of CLI.

“We are thrilled to be able to grow our capital partners ‘ network by partnering with established family offices and corporates by launching this fund. This platform is also expected to add to CLI’s funds under management as well as fee-related income and increase the pipeline of assets for our listed and private fund vehicles. As a leading global real estate investment manager we will continue looking for opportunities that can provide steady returns for our investors as well as expand our circle of financial partners improved access to the most lucrative markets within Southeast Asia,” Goh adds.