Alpha Investment, Manulife Form $200m Logistics Property JV in Indonesia

Photo by Bayu Syaits on Unsplash.

INDONESIA – Alpha Investment Partners Limited, PT Asuransi Jiwa Manulife Indonesia, a subsidiary of Manulife Financial Corporation, and PT Mega Manunggal Property Tbk (MMP) have entered into a new venture that will focus on Indonesia’s fast-growing logistics property sector.

Comprising Keppel-MMP Indonesia Logistics Fund Private Limited and an Indonesian parallel fund and co-investment capital from Manulife, the Venture has an initial target size of US$200 million and will acquire and manage logistics properties in Indonesia.

The venture is subject to the fulfillment of certain condition precedents, including the completion of the acquisition of the initial portfolio.

Alpha, a private fund manager under Keppel Capital Holdings, will be the investment manager of the venture, while MMP, a listed logistics space provider in Indonesia, will be the strategic advisor to Alpha and property manager of the venture’s logistics properties.

The venture has received initial capital commitments of approximately US$93 million from venture partners, including PT Asuransi Jiwa Manulife Indonesia.

As part of the agreements, the venture intends to acquire stakes in four modern and high quality stabilised logistics assets in Greater Jakarta from MMP as its initial portfolio.

The initial portfolio comprises three single-tenanted properties and one multi-tenanted logistics property with a total net lettable area of over 163,000 sqm.

These assets with an occupancy of more than 96%, serve established tenants in the consumer goods, logistics, and e-commerce industries, such as Unilever, Li & Fung, and DHL.

The sale of these four assets by MMP to the Venture, subject to conditions, has been approved by MMP’s shareholders at an Extraordinary General Meeting held on 20 December 2019.

“With Indonesia’s growing middle-class population driving the rapid growth in consumption and e-commerce, coupled with the limited supply of modern logistics facilities in Jakarta, the Indonesian logistics property sector is seeing strong demand,” Alpha CEO Alvin Mah said.

The venture, Mah added, will allow Alpha to capture opportunities arising from this evolving landscape, and to offer its venture partners exposure to the high growth potential of the logistics property sector in Southeast Asia’s largest economy.

MMP CEO Bonny Budi said the platform allows MMP to take its first step in implementing an asset-light strategy to recycle capital from its stabilised portfolio.

On the other hand, Ryan Charland, President Director & CEO Manulife Indonesia and Mr Kenny Lam, Senior Managing Director, Head of Asia Real Estate Investments for Manulife said, “the quality of the assets is well regarded and, along with the country’s positive long-term macro and demographics prospects, this acquisition fits well with our long-term investment strategy for the Asia Pacific market and will surely bring added value to us and to Indonesia in the long run.” –