Leading new economy developer BW Industrial Development Joint Stock Company, announced today that it has acquired approximately 74,000 square metres (796,529 square feet) of prime landbank in the Bac Tien Phong Industrial Zone in northern Vietnam’s Quang Ninh province.
The Vietnam industrial real estate specialist co-founded by Warburg Pincus and Becamex IDC is acquiring the ready-built factory asset from DEEP C Industrial Zones as its third purchase from the local infrastructure builder and its first project in Quang Ninh province, home to Vietnam’s famed Halong Bay.
The property in Bac Tien Phong Industrial Zone, part of the Quang Yen Coastal Economic Zone, expands BW’s presence in northern Vietnam’s key industrial markets and will boost its ability to serve export manufacturers and tenants seeking alternative port-based locations upon its expected completion in the second quarter of 2023.
Situated along the Hai Phong-Ha Long-China border expressway, the site is a short 15-minute drive to the Haiphong Seaport Clusters and 4-hour haul for trucks travelling to the Mong Cai International Border Gate and its access to China.
Connecting China and Vietnam’s Coast
Given its prime location, extensive expressway networks, and excellent connectivity to densely populated centres, major manufacturing clusters, ports and airports, the project seeks to meet Vietnam’s growing requirements for manufacturing space as the country continues to gain favour among regional and global producers.
“As we’ve seen Vietnam’s continued success as a manufacturing location bring industrial parks in Haiphong and Bac Ninh to to full capacity and more tenants shifting to locations like Bac Giang province, we expect the next wave of expansion to bring more investors to Quang Ninh,” said BW chief executive officer Lance Li. “Vietnam has emerged as the biggest beneficiary of pandemic-induced supply chain relocations; we see ample room for growth in industrial real estate and will continue to invest heavily in international-grade factories and warehouses across the country.”
That expansion is part of a consistent growth strategy executed by BW since its establishment which has allowed it to become the largest for-rent industrial platform in Vietnam with over 7.76 million square metres of prime industrial land under control across more than 35 projects in 26 strategic economic locations throughout the country. This latest transaction will add a total gross floor area (GFA) of around 47,000 square metres to its portfolio, expanding its current GFA to 2.2 million square metres of properties completed or under construction.
“We are currently witnessing a once-in-a-generation, tech-driven change in real estate. BW continues to be a pioneer in the market, accelerating our growth trajectory on the back of greenfield developments, acquisitions, and joint ventures. We believe the firm is well-positioned to answer the demand as new economy real estate continues to grow,” Li added.
Third Cooperative Project
Li said that the Quang Ninh project brings BW’s total cooperative acquisitions with Deep C to approximately 237,455 square metres of sites since the end of 2019.
Koen Soenens, general sales and marketing director of DEEP C Industrial Zones, remarked, “The Bac Tien Phong Industrial Zone features an all-in-one model that integrates a dedicated (petro)chemical park and a built-in seaport complex with general cargo terminals and liquids jetties. Our goal is to develop an industrial zone that fits an array of industries while leveraging tenants’ logistics advantages on top of the existing excellent connectivity.”
New investments in ready-built factories have been flowing into DEEP C in Quang Ninh, especially in the Bac Tien Phong Industrial Zone. “Large industrial real estate developers like BW are leading the industrial transformation of Quang Ninh province, ready to reap the advantages offered to first movers. At the same time, the high concentration of for-rent industrial space projects proves the increase in investment demand as well as market potential,” Koen added.
“With an array of advantages and lofty incentives, Quang Ninh Province, with an eye toward developing the Quang Yen Coastal Economic Zone, is ripe for industrial park and logistic project investments,” said Mr Hoang Trung Kien, head of the official Quang Ninh Economic Zone Authority (QEZA). “BW is recognized for its commitment to supporting and creating the most favorable conditions to accelerate the implementation of this project. We are confident in the company’s experience and capacity to deliver world-class projects that will increase occupancy, create jobs for local laborers, and promote sustainable socio-economic development while benefiting the industry as a whole.”
The transaction is subject to relevant regulatory approvals.
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About the Company
Founded by Warburg Pincus, a leading global private equity firm, and Becamex IDC, a leading industrial infrastructure developer in Vietnam – BW is Vietnam’s largest and fastest-growing logistics and industrial real estate developer with over 7.76 million square metres of prime industrial land under control across more than 35 projects in 26 strategic economic locations across the country. BW has been focused on developing light industrial and modern warehouses to capture the outsized manufacturing growth, increasing domestic consumption, and rapid growth in e-commerce. BW has secured equity commitments in excess of USD 800 million from shareholders and has formed strategic partnerships with ‘Queen Bee’ FDI, e-commerce, and logistics players to serve one of the fastest-growing markets in Asia. For more information about BW, please visit https://bwindustrial.com/.