The lack of high-tech assets, modern warehouse space is the opportunity that the big companies are targeting, Vietnam's logistics real estate lacks.
Logos Vietnam Logistics Venture, a joint venture between Logos and a foreign partner, was formed for the purpose of investing in logistics real estate in Vietnam. This is the 4th joint venture in 2020 of Logos, a real estate corporation from Australia and also a member of ARA Fund Management Company. Last March, ARA bought Logos from two founders. Up to now, Logos' Asia-Pacific portfolio has grown to 100 logistics properties in 9 countries with total assets under management of about $ 9.5 billion.
Returning to the story of the venture, Logos did not disclose the names of the partners participating in the joint venture but said that this is a global investor. Logos Vietnam Logistics Venture aims to raise $ 1 billion across the region. This joint venture is expected to invest money in logistics facilities in Vietnam and some countries such as South Korea ...
In the past, when expanding investment to Singapore and Indonesia, Logos successfully raised capital from strategic investors such as Canada Pension Plan Investment Board (CPPIB), Ivanhoe Cambridge ... Now, after a week of speaking (from August 10), Logos has basically arranged its finances and started to plan to penetrate the Vietnamese market.
According to the plan, in the first phase, Logos Vietnam Logistics Venture is expected to spend about 350 million USD to invest in logistics real estate in central areas such as TP. HCMC, Hanoi and Da Nang. After that, the joint venture will conduct strategic M&A deals, how in the next 12-18 months, Logos can provide a steady stream of logistics facilities to customers in key locations. Further, Logos will focus on acquiring and developing brands in the logistics sector and focusing on the core segments of e-commerce, food and cold storage. In terms of personnel, since January 2020, Logos has also appointed Mr. Glenn Hughes, former Head of Capital Management of PwC Vietnam, as the head in Vietnam.
Mr. Trent Iliffe, CEO and co-CEO of Logos, emphasized that the reason why Logos still established a joint venture to invest in Vietnam in the middle of the COVID-19 epidemic because of seeing the new growth potential of Vietnam. According to Savills Vietnam, industrial real estate, including real estate logistics (forwarding - logistics) is the brightest sector of Vietnam's real estate industry.
In the first half of this year, of the $ 15 billion FDI attracted, most were used directly for industrial and manufacturing zones. Therefore, the demand for warehousing, forwarding ... increases.
As noted by Savills Vietnam, among 261 industrial parks in operation, the occupancy rate has reached 76%. Considering only the key areas such as Binh Duong, Dong Nai, Long An (the South), Bac Ninh, Hung Yen, Hai Phong (the North), the occupancy rate is even higher.
“Most leasing transactions in the first half of 2020 originate from projects and negotiations took place since last year,” said John Campbell, Head of Industrial Real Estate, Savills Vietnam. concentration. Most of the tenants of real estate logistics are companies with offices in Vietnam and are looking to expand production. And new projects, from new investors, have yet to be promoted due to travel problems caused by translation. However, according to data from Real Capital Analytics, overall in the Asia-Pacific region, if retail real estate falls 68%, then industrial real estate transactions and the logistics and logistics industry will only decrease. 24%.
Only for old transactions and projects, the situation of demand exceeding supply has occurred. Therefore, the Savills Vietnam report said that increasing supply becomes urgent, especially in the context that many world manufacturers plan to leave China to move to Vietnam.
In fact, Vietnam is a remarkable destination thanks to the complete elimination of the SARS epidemic and continues to make its mark in the fight to prevent the COVID-19 epidemic. In addition, under the impact of the "China +1" strategy, the US-China trade war, to reduce risks and diversify locations, world corporations are also changing and expanding their locations.
Other factors such as a strong rise in the middle class, a stable business environment, tax incentives, free trade agreements, a young workforce and low costs ... contribute help Vietnam brighter in the eyes of investors.
To meet the new demand, Dong Nai plans to add eight more industrial zones. BW Industrial, a joint venture between Becamex IDC and Warburg Pincus, also sought to expand its operations, increasing its charter capital to VND 4,916 billion (USD 260 million) and increasing the supply of industrial real estate for lease from 130 hectares. in 2018 to nearly 500 hectares this year.
By the end of 2019, BW Industrial has developed more than 10 projects on a total land fund of 230 hectares in 6 provinces and cities, including
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