Industrial developer and investor LOGOS has launched a $500 million fund to acquire logistics facilities in Australia. Its partner was not disclosed.
“The Australian logistics market has continued to deliver solid returns over the past three, five and 10 years, and we expect this performance to continue, with the sector experiencing strong demand driven by trade flows and growth in online retailing,” said John Marsh, joint managing director, LOGOS.
The core and core-plus fund is named the LOGOS Australia Logistics Portfolio. It will invest in logistics facilities in prime industrial markets, predominantly along Australia’s eastern seaboard.
Marsh added, “Given Australia’s growing exposure to online retailing, and our experience across a number of Asian markets that have experienced significant online retail growth, we’re excited to be able to bring our learnings from these markets and adapt them to Australia’s growth story.”
Australia’s logistics and warehousing market is expected to reach A$187 billion ($146 billion) by 2021, according to Ken Research’s October 2017 report. The logistics market showed an impressive growth rate in 2016, owing to the expanding manufacturing and retail sector, growing number of foreign companies, and increasing value of exports and imports in the country.
The firm predicted the Australia logistics and warehousing industry will be driven by government investment in infrastructure development of road, rail, air and water transport facilities. Around A$70 billion ($55 billion) has been allocated for transport infrastructure from 2014 to 2021. Moreover, the government is planning to spend A$75 billion ($58 billion) for funding road and rail infrastructure from 2018 to 2027. In addition, the partnership of the Australian government with New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory and the Australian Capital Territory is expected to assist the various land transport infrastructure projects.
Macquarie Capital, together and through its affiliates, acted as exclusive financial adviser to LOGOS for the transaction and as sole lead manager and arranger for the venture’s capital-raising.
