CTP to buy Ares-owned SLP Vietnam portfolio for $500 million

By Amara Osei

CTP has agreed terms to acquire 100% of the South-East Asia Logistics Partners (SLP) portfolio and operating platform in Vietnam for $500 million. In a Monday statement, the Netherlands-based developer, owner and operator of logistics and industrial real estate identified Ares Management Corporation as the seller, a US-based alternative investment manager.

The deal covers both the property portfolio and the platform used to operate it. CTP said the acquisition gives it full ownership of seven standing assets and six development sites in Vietnam.

What does the $500 million transaction include?

The seven standing assets total 504,000 square meters of net lettable area. The six development sites have the potential to deliver about 585,000 square meters.

Together, those assets would take CTP’s Vietnam portfolio to about 1.1 million square meters. The completed portfolio would account for 504,000 square meters, with about 585,000 square meters of potential capacity coming from development.

The standing assets were completed between 2022 and 2024. CTP said they already generate more than $23 million a year in stabilized net operating income.

Construction has started on two of the development sites. Those projects will deliver 140,000 square meters of Grade A industrial and logistics space, according to CTP.

CTP expects the full development pipeline to add about $33.8 million a year in net operating income. That forecast covers all six sites, including the two where construction has started.

How much income comes with the assets?

CTP’s figures separate current portfolio income from its development forecast. More than $23 million a year comes from stabilized standing assets, while the full development pipeline is expected to add about $33.8 million annually.

The $500 million purchase combines seven completed income-producing assets with six sites targeted for further space. CTP said the two sites under construction will deliver 140,000 square meters of Grade A industrial and logistics space.

Where is the portfolio concentrated?

CTP’s location breakdown places 59% of the portfolio in northern Vietnam. Most of those assets sit near manufacturing clusters around Hanoi, Bắc Ninh and Hải Phòng.

The remaining 41% is in southern Vietnam, around Ho Chi Minh City. The allocation puts nearly three-fifths of the assets in the north and just over two-fifths around the southern hub.

Which clients and staff come with it?

CTP said the portfolio has an established client base. It includes the Asian multinationals J&T Express, Shopee Express and Nippon Express, as well as an established leasing network in China.

More than 55 staff across development, leasing, asset management and property management would move to CTP with the portfolio. The transferred organization covers both the standing assets and the six-site development program.

CTP also acquires SLP’s operating platform alongside the real estate. That adds an established leasing and property-management organization in Vietnam, alongside the client relationships and China network already embedded in the portfolio.

Why did CTP choose Vietnam?

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. In the same statement, he linked the case for Vietnam to clients’ production strategies.

He added: “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 comments connect the acquisition to clients’ China-plus-one production plans. CTP said Vietnam was a natural location for companies seeking production capacity beyond China.

When will the deal close?

Completion remains subject to agreed conditions, including regulatory approvals. CTP expects the transaction to close in the coming months and gave no calendar date in its Monday statement.

At closing, CTP would control 100% of the SLP portfolio and operating platform, with Ares Management Corporation exiting as seller. The $500 million price covers seven standing assets and six development sites with potential for about 1.1 million square meters.

The stated next steps are regulatory clearance and completion in the coming months. CTP expects the full pipeline to add about $33.8 million a year in net operating income, extending a standing portfolio that already generates more than $23 million annually.