Baker McKenzie has advised CapitaLand Investment Limited ("CLI"), a leading global real estate investment manager with a strong Asia foothold, on its strategic partnership with Ally Logistic Property ("ALP") and Pruksa Holding PCL ("PSH"), to establish a SGD 1 billion CapitaLand SEA Logistics Fund ("CSLF"). CLI, ALP and PSH have committed an initial equity investment of SGD 270 million with an option to increase their investment up to SGD 540 million, and a target to achieve assets under management of SGD 1 billion.
CSLF will develop smart logistics infrastructure in order to meet the rising demand in Southeast Asia for warehouses. CLI, ALP and PSH will contribute their respective strengths and network in this partnership to grow CSLF's logistics portfolio in Southeast Asia. Under the strategic partnership, CLI will be CSLF's fund manager, leveraging its well-established global real estate platform, fund management expertise and local operating presence to provide the fund a competitive advantage in deal sourcing, investment, and execution. ALP will provide automated warehouse technology while Pruksa will provide market knowledge and integrated development experience in Thailand.
ALP is a total warehousing solution provider in the Taiwan logistics industry, providing cutting-edge smart warehousing solutions, including warehousing property, automation system integration, and warehousing services. PSH is one of Thailand's top real estate developers and is listed on the Thailand Stock Exchange. PSH primarily focuses on the development of affordable residential projects, including townhouses, single detached houses and condominiums for all customer groups, notably in Bangkok, Thailand.
The Baker McKenzie team was led by Hong Kong based funds Partner Jason Ng.
Commenting on the deal, Jason said, "We are very pleased to be able to assist CapitaLand Investment in this strategic transaction. This transaction not only helps strengthen our client's global logistics ecosystem catering to requirements from a full spectrum of end-users, but also enables our client to tap into the long-term growth potential of the smart logistics infrastructure that is expected to benefit from the favorable economic fundamentals in Southeast Asia."
Jason added, "As CapitaLand Investment continues to expand its portfolio and source for opportunities that will deliver sustainable returns for its investors as well as grow its network of capital partners, we look forward to working hand in hand with our client to support their legal needs."