GLP launches $1.1bn Vietnam logistics fund

This is a first close, according to a source close to the situation. The target corpus is USD 1.1bn, but the fund will remain open to further investment. LPs include pension funds, sovereign wealth funds and insurance companies representing Asia, Europe, North America and the Middle East. Among them are Canada’s Manulife and APG Asset Management of the Netherlands.

GLP Vietnam Development Partners I, which will focus on modern and environmentally friendly facilities in the greater Hanoi and Ho Chi Minh City areas, is being touted as on track to become one of the largest logistics funds in Southeast Asia. It is seeded with six development sites, representing a total land area of almost 900,000 square metres and claims a “robust” project pipeline.

GLP entered Vietnam in 2020 through a joint venture with SEA Logistics Partners (SLP), a local platform that stresses its focus on sustainable, technology-enabled project development. Last year, the two partners broke ground on their first joint project: a 190,100-square-metre development site with six single-story warehouses in Hai Phong, a seaport near Hanoi.

“With the shift of supply chain and shortage of modern logistic facilities, this creates tremendous opportunity and demand for SLP's logistics infrastructure.” Chih Cheung, a founding partner of SLP, said in a statement. “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.”

GLP described Vietnam as one of the most attractive markets in the region given its population dynamics, growing economy, and middle class, which support domestic consumption. It plans to leverage its experience in China and India, where it has tracked similar trends.

Formerly known as Global Logistic Properties, GLP was acquired in 2017 for $11.5 billion by a consortium including Hillhouse Capital and Hopu Investment. Its global real estate and private equity assets under management amount to more than USD 120bn. The PE arm has invested more than USD 2bn in some 100 technology companies globally.

E-commerce and the reordering of global supply chains – both pandemic-accelerated trends – have increasingly brought global institutional investors into Asian logistics and stoked PE interest in modern, tech-enabled capacity. Sector specialists note that the winners in this space will understand the needs of new-economy demand and anticipate hyperlocal operational pitfalls.

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• Topics
• Southeast Asia
• Fundraising
• Real estate
• Vietnam
• GLP
• Manulife
• APG
• Logistics
• e-commerce