In a bid to expand its presence in Asia, Sydney-based real estate firm LOGOS has formed a new investment partnership to acquire the 25-hectare REC site in Tuas South, Singapore in a $430-million deal.
According to an official statement, the new partnership comprises the Ivanhoe Cambridge and Canada Pension Plan Investment Board (CPPIB)-backed LOGOS Singapore Logistics Venture (LSLV) and new investors, Bouwinvest Real Estate Investors and LaSalle Global Partner Solutions (LaSalle GPS).
The partners have acquired the S$585 million (around $430 million) property through a long-term sale-and-leaseback agreement with the Singapore arm of the global solar firm, REC. This latest acquisition expands LOGOS’ Singapore portfolio into the renewable energy space, with REC as its master tenant.
The Tuas South property is located next to the future Tuas Mega-Port, which when completed will house all of Singapore’s future container activities and handle up to 65 million standard-sized containers; up from around 40 million today.
The property, which was built in 2010, includes a 151,810 sq m integrated industrial and warehouse facility 100 per cent leased to REC for the conversion of polysilicon into wafers, solar cells and solar panels.
The deal was concluded in early January this year.
Since its formation in 2017, LSLV has investments in six projects in Singapore with an expected gross floor area of 596,433 sq m.
“The REC acquisition is a landmark transaction in Singapore and we are pleased with this co-investment to expand our presence in the Asia Pacific region, where Bouwinvest has recently opened a local office,” said Tjarko Edzes, Director for Asia Pacific Investments for Bouwinvest .
Macquarie Capital (Australia) Limited (together and through its affiliates, Macquarie Real Estate Investments) acted as exclusive financial adviser to LOGOS for the transaction.
In late 2017, LOGOS had acquired an industrial property in Tuas in Singapore which it had planned to redevelop into a modern food processing and logistics facility for a total estimated development cost of S$79 million.