The fund is set to be one of Southeast Asia’s largest logistics development funds.
GLP, on Jan 24, announced that it has launched its maiden Vietnam fund with an investment capacity of $1.1 billion.
The GLP Vietnam Development Partners I was established on Jan 21, which is set to be one of Southeast Asia’s largest logistics development funds.
The fund will focus on developing modern and environmentally-friendly logistics facilities in Greater Hanoi and Greater Ho Chi Minh City in Vietnam.
It is seeded with six development sites with a total land area of close to 900,000 sqm and has a “robust development pipeline of further opportunities”.
So far, the fund has received commitments from a well-diversified group of investors representing pension funds, sovereign wealth funds and insurance companies across Asia, Europe, North America and the Middle East.
New investors such as Dutch pension fund manager APG Asset Management and Toronto-headquartered global financial services provider, Manulife, were also welcomed by GLP through the fund.
GLP, a Singapore-based global real estate logistics provider and investment manager, entered the Vietnam market in 2020 through a strategic joint venture (JV) with SLP.
“Institutional investment in Asia Pacific’s (APAC) logistics sector has been strong and within Southeast Asia, Vietnam is one of the most attractive markets given its population dynamics, growing economy and middle class which support domestic consumption,” says Craig A. Duffy, managing director, fund management at GLP.
“We see similarities between Vietnam and our logistics businesses in China and India and know we can leverage our expertise and knowledge from our experiences in those markets to create a sustainable, market-leading business in Vietnam,” he adds.
Kent Yang, a founding partner of SLP, expressed his excitement about the establishment of the fund, saying that Vietnam is the “right place at the right time for SLP”. The group has a long-term view to grow its business in the country, adds Yang.
“With the shift of supply chain and shortage of modern logistic facilities, this creates tremendous opportunity and demand for SLP's logistics infrastructure,” he continues.
Chih Cheung, another founding partner of SLP, adds, “Vietnam's logistics industry is also experiencing strong growth due to strong domestic consumption from a rising middle class and to rapid e-commerce adoption. We thank and welcome the investors into our fund and look forward to serving our global and local customers with GLP-SLP's unique national network and large integrated platform."