Hongkong-based ESR Cayman Limited (ESR) has formed a joint venture with Warburg Pincus-backed BW Industrial Development Joint Stock Company (BW), the largest and fastest-growing logistics and industrial real estate developer in Vietnam. The joint venture marks ESR’s first step into the Vietnamese market. Meanwhile, BW already has over 5 million sqm of prime industrial land under control across over 25 projects in 20 prime economic locations across Vietnam.
The new joint venture between ESR and BW will develop and own My Phuoc 4 Industrial Park in Binh Duong Province, a leading hub of industrial development in Southern Vietnam. Given its location, the new industrial park will enjoy excellent motorway access and connectivity to densely populated areas, major industrial clusters, ports, and airports. Slated to be ready in August 2021, My Phuoc 4 Industrial Park will have 240,000 sqm of logistics and light industrial facilities, catering to a wide variety of local and international tenants. ESR will work with BW on the leasing of the My Phuoc 4 Park leveraging its strong roster of customers.
Jeffrey Shen and Stuart Gibson, ESR co-founders and co-CEOs, remarked that Vietnam’s industrial and logistics real estate sector is coming of age. It is one of the most promising markets within South East Asia, benefitting from a range of favorable macro-economic factors, including its high and stable GDP growth rate, growing income level, and thus emerging middle class, rapid urbanization, and infrastructure development.
Vietnam’s logistics real estate is expected to grow another 14-16% annually over the next three years. The country has also been a key beneficiary of the recent reallocation of manufacturing and supply chain activities from China to South East Asia.
(Sources: ESR; Vietnam Investment Review; CRE Herald)