The agreed property value of D Project Tan Duc 2 is approximately $19.9 million, which is 3 per cent lower than the average independent valuation of $20.5 million.

The total acquisition cost, including transaction-related expenses, will be financed mainly through loans. The deal is expected to be completed in the second quarter of 2024.

Jun Yamamura, CEO of DHLT said, “This is a landmark transaction for DHLT as D Project Tan Duc 2 will be its first property outside of Japan. The entry into Vietnam, a growing economy in Southeast Asia, will see a high-quality facility added to DHLT's existing portfolio to further enhance its quality."

"It is strategically located in a gateway province that connects Ho Chi Minh City, a key economic centre, to the Mekong Delta region, an important aquaculture hub. D Project Tan Duc 2 will also provide DHLT with a stable income backed by a strong tenant. We are confident that the property will contribute positively to our operations,” the CEO continued.

Vietnam is one of the fastest-growing economies in the Southeast Asia, with its GDP growing by 5.3 per cent on-year in the third quarter of 2023 – an improvement from the first and second quarters.

The International Monetary Fund has forecasted GDP growth of 4.7 per cent for Vietnam in 2023, followed by 5.8 per cent and 6.9 per cent in 2024 and 2025, respectively – the highest prediction in Southeast Asia for both years.

D Project Tan Duc 2 was completed in September and is a built-to-suit property developed for the cold storage of frozen and chilled food. As the property was only completed recently, this will minimise capital expenditure in the near term. Vietnam is currently experiencing a shortage of such facilities, and demand is supported by the nation's growing middle class, improving economy, and a booming e-commerce sector.

D Project Tan Duc 2 is fully leased to a company that specialises in frozen and chilled food transportation services for a 20-year term from October 2023. The tenant is well-established in the region with two other facilities, and it distributes food and beverage products to local supermarkets. It is also a group company of a Tokyo Stock Exchange-listed entity.

The project boasts a strategic location within Tan Duc Industrial Park in Long An province, which is in the Mekong Delta region and next to Ho Chi Minh City. Long An is also one of the key hubs for cold storage logistics facilities in Vietnam, accounting for approximately 27 per cent of the total space.