Singapore-headquartered private equity firm GLP and SEA Logistic Partners (SLP) have announced a joint venture to invest in, and develop, modern logistic real estate assets in Vietnam. The JV will initially focus on Greater Hanoi, and Ho Chi Minh City and its nearby provinces — the two largest markets in the country.
The partnership enables SLP to leverage GLP’s fund management, development, and operational expertise and resources, as well as GLP’s extensive global customer network, according to a statement on Thursday.
SLP also announced that it has secured approximately 335,000 square metres of land in Greater Hanoi and Greater Ho Chi Minh City for the development of three modern logistics assets which will have 210,000 sq. m of net leasable area upon completion.
Two of the developments, SLP Park Bac Giang and SLP Park Bac Ninh, are strategically located in North Vietnam. The third property, SLP Park Long Hau, is strategically located in Long Hau in Long An Province and is part of the Greater Ho Chi Minh area, which serves as a bridge between Ho Chi Minh City and the 12 provinces in the Mekong Delta.
SLP Park Bac Giang, with a net leasable area of 80,000 sq. metres, has received 50 percent pre-leased commitment from Jusda, the former central logistics unit of Foxconn group, as well as an existing GLP customer.
“Within Southeast Asia, Vietnam is one of the most attractive markets given its population dynamics, growing economy, and a middle class that supports domestic consumption. When GLP enters a new market, growth and scalability are two key factors we consider. We see similarities between Vietnam and our logistics businesses in China, India, and Japan and know we can leverage our expertise and knowledge from our experiences in those markets to create a strong and sustainable business in Vietnam,” Ming Mei, co-founder, and CEO of GLP said.
Kent Yang, a founding partner of SLP and former president of GLP China, revealed Vietnam has a large domestic market and a growing middle class. It is driven by its population which is soon expected to reach 100 million people.
“Many Vietnamese are digital consumers. These factors and trends have made online shopping more accessible to a larger portion of the population and are driving demand for more efficient and modern logistic warehouses in the country,” Yang said.
GLP focuses on logistics, real estate, infrastructure, finance, and related technologies. It operates across Brazil, China, Europe, India, Japan, the US, and Vietnam. It had $89 billion in assets under management in real estate and private equity funds. SLP is an industrial and logistic facility development and operation platform backed by GLP.