SLP keeps it simple with its first project in Vietnam
SEA Logistic Partners, a joint venture backed by warehouse giant GLP, inaugurated a set of hangars in the port city of Haiphong, in northern Vietnam, marking SLP’s first logistics development in this rapidly industrializing country and in South Asia. -East.
SLP Park Hai Phong will consist of six one-story warehouses with an area of ​​88,810 square meters (955,943 square feet) and an area of ​​190,100 square meters. The first phase, due for delivery in the second quarter of 2022, includes three warehouses with an area of ​​47,560 square meters and an area of ​​100,000 square meters.
The development of the Dinh Vu-Cat Hai economic zone of Haiphong is located approximately 120 kilometers (75 miles) east of the capital, Hanoi, and will meet the growing demand for port logistics and import-export distribution, a said SLP, based in Ho Chi Minh City. in a press release.
“This innovation represents the start of our long-term commitment to the Vietnamese market,” said Kent Yang, founding partner of the joint venture and former Chinese chairman of GLP. “We launched SLP to create a world-class industrial and logistics infrastructure in Southeast Asia and support the region’s economic development. We look forward to working with local partners and the government to contribute to Vietnam’s modern logistics infrastructure.
Launched start
Since entering Vietnam in October through its joint venture with Singapore-based GLP, SLP has acquired five development sites with a total area of ​​nearly 700,000 square meters and has expanded its team to more than 20 members.
SLP boss Kent Yang stays on port in Haiphong
The partners declined to reveal financial details of their acquisitions in Vietnam, saying only that they aimed to invest $ 1 billion to build a modern logistics real estate platform covering up to 1.5 million square meters in the country. over the next three to four years.
SLP will initially focus on Vietnam’s two largest markets, Greater Hanoi and Ho Chi Minh City, the springboard for the initial project in Haiphong, the country’s third largest city and second port (after Saigon).
Yang started SLP last year with co-founder Chih Cheung, a venture capitalist and board member of Hong Kong consumer goods firm Li & Fung, which withdrew from the Hong Kong stock exchange. in 2020 after the family controlling the company partnered with GLP on a HK $ 7.2 billion ($ 930 million) Privatization.
With GLP now managing more than $ 110 billion in real estate and private equity assets, SLP said it plans to leverage the fund management, development and operational expertise of the logistics giant from GLP, as well as leveraging its global network of customers.
Crowded field
SLP launches its first project in Vietnam as the rapidly growing Southeast Asian nation becomes a hotbed of warehouse development. Just two months before the joint venture with GLP launched last year, rival Logos Property revealed its own entry into the market with a $ 350 million joint venture alongside an anonymous institutional investor.
Sydney-based Logos announced in October its acquisition of land outside Hanoi for its first distribution center in the country, with the aim of developing a facility covering up to 80,000 square meters of space. warehouse with an expected asset value of $ 70 million upon completion.
In May this year, ESR announced that it was partnering with an industrial platform backed by Warburg Pincus to develop and own an industrial park near Ho Chi Minh City, marking the first project of the listed warehouse giant. Hong Kong in Vietnam.
My Phuoc 4 Industrial Park, located north of Vietnam’s largest city in the industrial center of Binh Duong, will have 240,000 square meters of logistics and light industrial facilities when completed, ESR said.
