GLP, a global investment manager and business builder in logistics, data infrastructure, renewable energy, and related technologies, on January 22 officially announced the establishment of GLP Vietnam Development Partners I (GLP VDP I), with an investment capacity of $1.1 billion.
The fund has received commitments from a group of diverse investors across Asia, Europe, North America, and the Middle East representing pension funds, sovereign wealth funds, and insurance companies.
|GLP launches $1.1-billion maiden Vietnam Logistics Development Fund |
Through this transaction, GLP welcomes several new investors to its fund management platform, including the Dutch pension fund manager APG Asset Management and Toronto-headquartered global financial services provider Manulife.
GLP VDP I, which will focus on developing modern and eco-friendly logistics facilities in the greater Hanoi and Ho Chi Minh City areas, is seeded with six development sites with a total land area close to 900,000 square metres and has a robust development pipeline. It is set to be one of the largest logistics development funds in Southeast Asia.
Craig A. Duffy, managing director of fund management said institutional investments in logistics have been strong within Southeast Asia, and Vietnam is one of the most attractive markets given its population dynamics, growing economy, and middle class which support domestic consumption.
“We see similarities between Vietnam and our businesses in China and India and can leverage our expertise and knowledge from our experiences in those markets to create a sustainable, market-leading business in Vietnam,” said Duffy.
GLP entered the Vietnam market in 2020 through a strategic joint venture with SEA Logistic Partners (SLP), an industrial and logistics facility development and operation platform.
Kent Yang, founding partner of SLP, said that Vietnam is the right place at the right time for SLP.
“We have a long-term view to growing our business here. With the shift of supply chains and the shortages of modern logistic facilities, this creates tremendous opportunity and demand for SLP's logistics infrastructure,” Yang said.
Meanwhile, Chih Cheung, founding partner of SLP added, Vietnam's logistics industry is also experiencing strong growth due to stable domestic consumption from a rising middle class and 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 network and integrated platform," he said.
Graeme Torre, managing director and APG’s head of Asia-Pacific Real Estate, said, that with the continued global supply chain shifts to Vietnam, the country's logistics is believed to be an attractive opportunity for investors in the region.
“Vietnam logistics market compliments very well with our existing regional logistics exposure, while also offering very strong risk-adjusted returns that will benefit our pension fund clients and their participants. With GLP’s extensive global track record, credentials, and expertise in the logistics sector, we are pleased to be partnering with them in this venture for our first foray into Vietnam,” said Torre.