Singapore-based investment manager GLP and SEA Logistic Partners (SLP) have announced a joint venture that will initially focus on investing in logistics real estate in Greater Hanoi and Greater Ho Chi Minh City in Vietnam.

SLP is an industrial and logistic facility developer and operator based in Ho Chi Minh City. The company has secured about 335,000 square metres of land in the two regions for the development of three logistics assets, which will have 210,000 sqm of net leasable area upon completion, according to a statement.

Two of the developments, SLP Park Bac Giang and SLP Park Bac Ninh, are located in North Vietnam. SLP Park Bac Giang, with a net leasable area of 80,000 sqm, has received 50% pre-leased commitment from Jusda, the former central logistics unit of Foxconn group, as well as an existing GLP customer.

The third property, SLP Park Long Hau, is in Long Hau, 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. 

The partnership will enable SLP to leverage GLP’s fund management, development and operational expertise and resources, as well as GLP’s extensive global customer network, the statement notes.

Ming Mei, co-founder and chief executive officer of GLP, comments: “Within Southeast Asia, Vietnam is one of the most attractive markets given its population dynamics, growing economy and middle class which support 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.”

Kent Yang, a founding partner of SLP and former president of GLP China, adds: “With a population soon expected to reach 100 million people, Vietnam has a large domestic market and a growing middle class. Many Vietnamese are digital consumers, spending approximately seven hours a day online. These factors and trends have made online shopping more accessible to a larger portion of the population and is driving demand for more efficient and more modern logistic warehouses in the country.”