Keppel's Alpha to acquire Indonesian logistics properties with Manulife, Mega Manunggal

17, Jun. 2020

Image by PublicDomainPictures from Pixabay
Image by PublicDomainPictures from Pixabay

SINGAPORE, NNA - Singapore's private fund manager Alpha Investment Partners Limited (Alpha) has launched a new venture with two partners to invest in Indonesia’s fast-growing logistics property sector.

The two Indonesia-based partners are PT. Asuransi Jiwa Manulife Indonesia, a subsidiary of Canada's Manulife Financial Corp., and PT. Mega Manunggal Property (MMP), a leading logistics space provider in Indonesia.

Capitalizing on the high growth potential of the logistics sector in the Southeast Asian country, the trio will jointly acquire and manage logistics properties, said a media statement from Alpha's parent company Keppel Capital Holdings Pte. Ltd., a premier asset manager in Asia and the asset management arm of Keppel Corp. in Singapore.

Comprising Keppel-MMP Indonesia Logistics Fund Private Limited and an Indonesian parallel fund as well as co-investment capital from Manulife, the venture has set an initial target of $200 million.

It has received initial capital commitments of approximately $93 million from the partners, including Asuransi Jiwa Manulife Indonesia.

Alvin Mah, CEO of Alpha, said, “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."

As part of their agreements, the venture plans to acquire stakes in four logistics assets in greater Jakarta from MMP as its initial portfolio. It comprises three single-tenanted properties and one multi-tenanted property, all adding up to a total net lettable area of over 163,000 square meters, said the statement.

The assets, which have a very high occupancy of more than 96 percent, serve established tenants in the consumer goods, logistics and e-commerce industries, such as global names Unilever, Li & Fung and DHL.

Alpha will be the investment manager of the venture, while MMP will be the strategic advisor.

While the move comes in a time of uncertainties after the coronavirus pandemic and lockdowns disrupted supply chains in logistics and transportation, the companies are confident of long-term prospects in Indonesia.

Said Mah, "The successful formation of the venture during a period of unprecedented market uncertainty is testament to Alpha’s ability to seek out quality investment opportunities and grow our capital platform.”

Bonny Budi Setiawan, CEO of MMP, said, “We are very pleased to collaborate with Alpha and Manulife, two of the world’s leading institutions, as it will not only enable us to monetize our assets but also offer capital sustainability to support MMP in capturing opportunities in the growing modern logistics property market in Indonesia.”

Issuing a joint statement, Ryan Charland, president director and CEO of Manulife Indonesia, and Kenny Lam, head of Asia Real Estate Investments for Manulife, said the venture would be its "first real estate investment in Indonesia".

"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,” said the Manulife executives.