CTP, a Netherlands-based developer, owner, and operator of logistics and industrial real estate, has agreed terms to acquire 100 percent of the South-East Asia Logistics Partners (SLP) portfolio and operating platform in Vietnam for $500 million.
In a statement on Monday, CTP said the seller is Ares Management Corporation, a US-based alternative investment manager.
The portfolio comprises seven standing assets totaling 504,000 square meters of net lettable area, plus six development sites with the potential to deliver about 585,000 square meters. Together, that would take the portfolio to about 1.1 million square meters.
Completed between 2022 and 2024, the standing assets generate more than $23 million a year in stabilized net operating income. Construction has started on two of the development sites, which will deliver 140,000 square meters of Grade A industrial and logistics space. CTP expects the full pipeline to add about $33.8 million a year in net operating income.
CTP says the portfolio has an established client base, including the Asian multinationals J&T Express, Shopee Express, and Nippon Express, and an established leasing network in China. By location, 59 percent of the portfolio is in northern Vietnam, near the manufacturing clusters around Hanoi, Bắc Ninh and Hải Phòng, and 41 percent is in the south, around Ho Chi Minh City. More than 55 staff across development, leasing, asset management and property management would move to CTP with the portfolio.
CTP CEO Remon Vos said Vietnam’s manufacturing base, labor, and energy costs, infrastructure, and political stability mirror the factors behind the company’s success in Central and Eastern Europe. He said many of CTP’s clients are looking beyond China for production as part of China-plus-one strategies. Vietnam is a natural location for them, the executive added.
Completion is subject to agreed conditions, including regulatory approvals, and is expected in the coming months.
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