Ivanhoé Cambridge, CBRE Ride China’s E-Commerce Wave

The growth of e-commerce in the Far East has encouraged two giant American companies to invest in its logistics properties.

By Keith Loria, Contributing Editor

Rita-Rose Gagne, Ivanhoe Cambridge
Rita-Rose Gagne, Ivanhoe Cambridge

Ivanhoé Cambridge and CBRE Global Investment Partners are putting money in the LOGOS China Logistics Club, which will allow LCLC to make investments that could total up to $400 million.

The joint venture was formed with the strategy of owning and developing high-quality modern logistics properties located in key areas serving large Chinese cities.

“The growth of e-commerce in China offers interesting real estate opportunities in logistics, especially in the hubs in submarkets of large Chinese cities like Shanghai,” Rita-Rose Gagné, Ivanhoé Cambridge’s executive vice president, growth markets, told Commercial Property Executive. “Logistics is the backbone of an efficient business-to-consumer retail experience.”

LOGOS Property Group is an integrated logistics real estate specialist comprising corporate groups with operations in Australia and China and currently has over $1 billion in assets and capital under management.

“This is an exciting next step in the growth of LOGOS in China,” John Marsh, LOGOS’ managing director & co-founder said in a company statement. “Together with our new partners, LOGOS will seek to further expand on our existing specialist logistics real estate platform in China, and capitalize on our deep pipeline of new development and investment opportunities.”

Just last week, Ivanhoé Cambridge partnered with Dutch pension asset manager APG Asset Management N.V. on an investment in Chongbang, a Shanghai-based developer of retail-anchored mixed-use properties, through a $920 million capital raising.

According to Gagné, the company’s investment with LOGOS China supports its plan to grow its exposure to opportunities in the logistics sector in key markets such as Shanghai and Guangzhou. CBRE Global Investment Partners has the same strategy in place.

“We look forward to continuing the growth of the LOGOS venture,” Adrian Baker, CBRE Global Investment Partners’ managing director, Asia Pacific, said in a statement. “The LOGOS venture is well positioned to acquire and develop logistics assets in our preferred sub-markets across key Chinese cities.”

Macquarie Capital Ltd. or its affiliates acted as exclusive financial adviser to LOGOS China Group for the transaction and as sole lead manager and arranger for the LCLC capital raising.