Frasers Property and Gelex Group announce $250 million deal

With this agreement, FPV will initially add 80 hectares of prime, strategically located industrial land to its land bank that will eventually be developed into more than 500,000 square metres of international-grade, ready-built factories, warehouses, and build-to-suit facilities.

Frasers Property and Gelex Group at the signing ceremony with plans to expand industrial development across northern Vietnam

This is in response to significant international interest in more industrial space within the region, as well as growing demand for high-quality, premium industrial real estate. Active in eight markets across Asia, Australia, and Europe, industrial and logistics is Frasers Property Group’s largest property asset class.

This portfolio expansion represents Frasers Property’s long-term commitment to Vietnam’s economic development.

In early February, FPV established its representative office in Hanoi to support its business expansion plans for industrial, commercial, and residential assets in the northern region.

CEO of Gelex Group Nguyen Van Tuan is confident that teaming up with an experienced and international real estate partner like FPV will create long-term, sustainable industrial developments.

Tapping into Frasers Property's global expertise in the industrial and logistics sector, as well as Gelex's position in the industrial real estate investment market in Vietnam, this cooperation plans to develop smart, modern, and sustainable industrial facilities in the country, catering to a new premium industrial estate segment – a first in the country.

Developments under the Premium Estates concept will consist of high-quality industrial facilities with strong sustainability and technological features aimed at supporting workplace productivity and occupiers’ health and wellbeing. The developments will also aim for international green building certifications in line with Frasers Property’s sustainability targets.

FPV's CEO added that Frasers Property has a focus on pursuing sustainable innovation in real estate.

“We are in the business of developing future-ready industrial facilities in Vietnam aligned with our group-wide sustainability goal, which is to be a net-zero carbon organisation by 2050. While doing our part for the low-carbon transition, we look forward to attracting higher value investments by bringing greater standards to industrial real estate in Vietnam’s northern region with one-stop designs for build-to-suit solutions as well as ready-built factories and warehouses. This also aligns with the government’s 2022 Decree No.35 on the management of IZs,” he added.

FPV’s first industrial showcase, Binh Duong Industrial Park (BDIP), located in one of Vietnam’s key southern economic hubs, has leveraged its longstanding development expertise in design and master planning capabilities.

BDIP will provide a total of more than 230,000sq.m of factories of all kinds along with perfect utilities within the next 6 to 7 years. In the first phase of development, about 40,000sq.m of ready-made factory space has already been handed over to tenants in 2022.

Phase 2 is now under development and will be launched to the market by 2025.

BDIP is also on track to achieve LEED Gold certification upon completion, one of the most respected green building certifications issued by the US Green Building Council.

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