Global logistics group GLP has formed a 50-50 joint venture with SEA Logistic Partner to invest up to US$1.5bn (€1.3bn) in logistic real estate in Vietnam.

IPE Real Assets understands that over the next three years, the partnership plans to invest US$1.5bn to develop some 2m sqm of logistics facilities.

The venture will initially focus on the two largest markets in the country, Greater Hanoi and Ho Chi Minh City and its nearby provinces.

SLP has secured approximately 335,000sqm of land in Greater Hanoi and Greater Ho Chi Minh City for development of three modern logistics assets which will have 210,000sqm of net leasable area upon completion.

Ming Mei, co-founder and CEO of GLP, described Vietnam as “one of the most attractive countries” in Southeast Asia. Its population dynamics, growing economy and middle class supported support domestic consumption.

“When GLP enters a new market, growth and scalability are two key factors we consider, said Mei.

“We see similarities between Vietnam and our logistics businesses in China, India and Japan and that 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, said Vietnam had a large domestic market and a growing middle class. Its population is expected to reach soon 100m people.

Chih Cheung, a founding partner of SLP, added Vietnam was poised to benefit from further diversification of both the global supply chain and manufacturing, and this would fuel demand for logistics infrastructure to support operations of both local and global companies.

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