Keppel, Manulife units and MMP tie up for Indonesia logistics venture

This venture will acquire stakes in four stabilised logistics assets from MMP as an initial portfolio.

Keppel Capital Holdings’ private fund manager Alpha Investment Partners Manulife’s Indonesia unit PT Asuransi Jiwa Manulife Indonesia and PT Mega Manunggal Property Tbk (MMP) have formed a new venture which will focus on Indonesia’s fast-growing logistics property sector, a press release confirmed.

Alpha will be the investment manager whilst MMP will be the property manager. Manulife will pursue the role of co-investor in this venture. The deal plans to acquire and manage Indonesian high-yielding logistics properties jointly with an initial capital of $279m (US$200m), of which $130 (US$93m) has already been received.

As agreed, the venture will acquire stakes in four modern logistics assets from MMP in Greater Jakarta for its initial portfolio. The assets comprise three single-tenanted and one multi-tenanted properties having a total leasable area of over 163,000 sqm. The sale of these four assets has been approved by MMP’s shareholders at an extraordinary general meeting held on 20 December 2019.