SEA Logistic Partners (SLP), a Southeast Asia-focused industrial and logistic facility development and operation platform, and joint venture with GLP, has broken ground on SLP Park Hai Phong, its first logistic development in Vietnam and Southeast Asia.
Upon completion, SLP Park Hai Phong will feature six single-story warehouses with a building area of 88,810 square meters and land area of 190,100 square meters. Phase one of the development includes three single-story warehouses with a total building area of 47,560 square meters and land area of 100,000 square meters and is expected to be completed in the second quarter of 2022.
The new development is strategically located in Dinh Vu–Cat Hai Economic Zone of Hai Phong city, the largest coastal economic and transportation hub in the northern region of Vietnam. Hai Phong Port is the second largest seaport in Vietnam, the largest seaport in northern Vietnam and is within 90 minutes of Hanoi and other major industrial clusters, which allows it to serve increasing demand in port-related logistics, as well as import and export related distribution.
“This groundbreaking represents the beginning of our long-term commitment to the Vietnam market,” said Kent Yang, a founding partner of SLP. “We launched SLP to create world-class industrial and logistic 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 logistic infrastructure.”
Last month, Vietnam Railways (VNR) opened a new direct rail freight in the nation’s capital, Hanoi, that departed for Liège, Belgium carrying 23 forty-foot equivalent units (FEUs) of garments, textiles and leather shoes out of Hanoi’s Yen Vien Railway Station.
VNR, the state-owned operator of the country’s railroad system, said the Hanoi-to-Liège transport is the first container freight train operated by member unit Rail Transport and Trade Joint Stock Company (Ratraco) in conjunction with foreign logistics companies to oversee shipments to the target destination.
Since entering Vietnam in October through a joint venture with GLP, SLP has acquired five development sites. Over the next three to four years, the joint venture aims to invest approximately $1 billion to build a 1 million square meter to 1.5 million square meter modern logistic real estate platform in Vietnam. It will initially focus on the two largest markets in the country, Greater Hanoi and Ho Chi Minh City and its nearby provinces and will be able to leverage GLP’s fund management, development and operational expertise and resources and extensive global customer network.
SLP is committed to be a leading responsible developer and a pioneer of environmental, social and governance (ESG) efforts in Vietnam. Due to the ongoing severity of the Covid-19 pandemic in Vietnam, SLP said it has developed strict health and safety protocols and is following the local government’s strict Covid-19 prevention measures on-site to ensure the safety of its employees and contractors.
SLP is an industrial and logistic facility development and operation platform backed by GLP, a global provider of modern logistics facilities and technology-led solutions. GLP operates across Brazil, China, Europe, India, Japan, the U.S. and Vietnam, and has more than $110 billion in assets under management in real estate and private equity.