First billion-dollar logistics fund established in Vietnam

GLP officially announced the establishment of GLP Vietnam Development Partners I (“GLP VDP I”) with a total investment value of 1.1 billion USD. The Fund receives commitment from a diverse group of investors from pension funds, sovereign wealth funds and insurance companies from Asia, Europe, North America and the Middle East.

First billion-dollar logistics fund established in Vietnam

Cargo waiting to be shipped at the SP-ITC International Container Terminal in HCMC (Photo courtesy of ITC)

LP will enter the Vietnamese market in 2020 through a strategic joint venture with SLP (SEA Logistic Partners) – the operator and developer of industrial and logistics infrastructure.

GLP has just established GLP Vietnam Development Partners I (GLP VDP I) in Vietnam with a total investment value of 1.1 billion USD.

This is one of the largest first logistics development funds in Southeast Asia. The Fund receives commitment from a diverse group of investors from pension funds, sovereign wealth funds, and insurance companies from Asia, Europe, North America and the Middle East.

Among these are new investors such as APG Asset Management, the Dutch pension fund’s wealth manager, and global insurance and financial services provider Manulife.

This investment fund will focus on developing modern and environmentally friendly logistics facilities in the Greater Hanoi and Greater Ho Chi Minh City areas. Starting with 6 projects with a total land area of ​​nearly 900,000 m2 and many potential projects for future development.

GLP is the world’s leading investment and development manager in logistics, data infrastructure, renewable energy and related technologies. The group currently manages a portfolio of assets totaling more than $120 billion in the real estate and private equity sectors.

GLP will enter the Vietnamese market in 2020 through a strategic joint venture with SLP (SEA Logistic Partners) – a logistics and industrial infrastructure operator and developer.

According to Agility’s 2021 emerging market logistics index report, Vietnam is in the top 10 leading emerging logistics markets with an index of 5.67 and an expected compound annual growth rate (CAGR) of 7% in period 2021-2026.

GLP VDP I will focus on developing modern and environmentally friendly logistics facilities in the Greater Hanoi and Ho Chi Minh City areas. Ho Chi Minh City expansion, starting with 6 projects with a total land area of ​​nearly 900,000 square meters, along with many potential projects for future development. This will be one of the largest logistics development funds in Southeast Asia.

According to Mr. Kent Yang, a founding member of SLP, Vietnam is the right destination at the right time and place for SLP.

“We have a long-term vision to grow our business here. With the shifting of the supply chain and the shortage of modern logistics facilities, this has helped create enormous demand and opportunities for the logistics infrastructure developed by SLP,” said Mr. Yang.

Mr. Chih Cheung, a founding member of SLP, added that Vietnam’s logistics industry is growing strongly thanks to the increase in domestic consumption and the rapid development of the e-commerce sector.

“We appreciate and always welcome investors to join the fund with the desire to serve local and global partners thanks to GLP-SLP’s unique and extensive integrated network,” said Mr. Cheung. speak.

Graeme Torre, APG’s Managing Director and Head of Real Estate Division, APG, said that with the global supply chain continuing to move to Vietnam, the middle class is growing larger. helps sustain economic growth and is one of the fastest growing e-commerce markets in Southeast Asia.

“We believe that Vietnam’s logistics sector is an attractive opportunity to invest in the region. Vietnam’s logistics sector very well complements our investments in the same industry in the region, and offers high returns after adjusting for risk factors as well as adding investment value. for our retirement clients. We are very pleased to be partnering with GLP through our first investment in the Vietnam market, along with GLP’s global track record, ESG endorsements and logistics expertise,” he said. Torre shared.

Mr. Craig A. Duffy – Managing Director, Fund Management Division, said: The investment cash flow from professional corporations into the logistics segment in Asia-Pacific is very strong, especially in In Southeast Asia, Vietnam is considered one of the most attractive markets thanks to its dynamic population, growing economy and rising middle class domestic consumption. We see similarities between Vietnam and our logistics business models in China and India. Therefore, we are confident to take advantage of our knowledge, experience and expertise in these markets to form a leading and sustainable development business in Vietnam.

“With the global supply chain continuing to move to Vietnam, the growing middle class helps maintain economic growth and is one of the fastest growing e-commerce markets in the East Asian region. In South Asia, we believe that Vietnam’s logistics sector is an attractive opportunity to invest in the region. Vietnam’s logistics sector very well complements our investments in the same industry in the region, and offers high returns after adjusting for risk factors as well as adding investment value. for our clients is our retirement fund,” said Graeme Torre, Managing Director and Head of Real Estate, Asia Pacific, APG.

Credit: VnExpress

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