BW Industrial Development JSC, Vietnam’s leading industrial and new economy real estate developer co-founded by Warburg Pincus and Becamex IDC, on January 19 announced the acquisition of approximately 74,000 square metres of prime land in Bac Tien Phong Industrial Zone in the northern province of Quang Ninh, developed by DEEP C Industrial Zones.
|BW Industrial Development JSC announces acquisition in DEEP C Industrial Zones in Quang Ninh |
This acquisition marks BW’s first footprint in Quang Ninh and its third collaboration with DEEP C Industrial Zones, expanding its presence across key industrial markets in the northern part of Vietnam.
The ready-built factory asset is located in Bac Tien Phong IZ, Quang Yen Coastal Economic Zone in the dynamic Quang Ninh market, an emerging economic powerhouse and a key destination for investments in the north.
Situated along the Haiphong-Halong-China border expressway, the site is a short 15-minute drive to the Haiphong Seaport Clusters and a 4-hour ride to the Mong Cai International Border Gate. Given its prime location, extensive expressway network, and excellent connectivity to densely populated centres, the project will be most ideally suited for export manufacturers and tenants seeking alternative port-based locations.
The project is scheduled for completion in the second quarter of 2023.
Lance Li, CEO of BW said, “The project encompasses an approximate 237,500sq.m of land acquired in partnership with Deep C since the end of 2019. As we’ve seen tenants move from Bac Ninh to Bac Giang with Haiphong’s industrial parks reaching full occupancy, we expect a similar trend among investors to seek space in Quang Ninh. Vietnam has emerged as the biggest beneficiary of pandemic-induced supply chain relocations, and 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.”
Through the execution of a consistent growth strategy since its establishment, BW is the largest for-rent industrial platform in Vietnam with over 7.76 million sq.m of industrial land under control across more than 35 projects in 26 strategic economic locations throughout Vietnam.
The latest transaction will add a total gross floor area of around 47,000sq.m to its portfolio, totalling 2.2 million sq.m 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,” Lance added.
Koen Soenens, general sales and marketing director of DEEP C Industrial Zones remarked, “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. The 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.”
|The ready-built factory asset is located in Bac Tien Phong IZ, Quang Yen Coastal Economic Zone in the dynamic Quang Ninh market |
New investments in ready-built factories have been flowing into DEEP C in Quang Ninh, especially Bac Tien Phong IZ.
“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.
Hoang Trung Kien, director of Quang Ninh Economic Zones Management Authority commented, “With an array of advantages and lofty incentives, Quang Ninh Province is ripe for industrial park and logistic project investments. BW is recognised for its commitment to supporting and creating the most favourable 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 labourers, and promote sustainable socioeconomic development while benefiting the industry as a whole."
The transaction is subject to relevant regulatory approvals.