Indochina Kajima continues rollout of world-class industrial property in Vietnam

Core5 Vietnam offers ready-built factories and warehouses for lease

Wholly owned by Kajima Corporation, Core5 Industrial Partners is a United States-based industrial real estate property company with expertise in the development of Class-A properties featuring the latest innovations.

Following success in the US, the Core5 brand expanded a year ago into Vietnam, one of Asia’s fastest-growing manufacturing and logistics markets, and became part of Kajima Corporation’s joint venture with Indochina Capital. This multi-asset real estate development venture, named Indochina Kajima, was until then mainly concentrated on hospitality projects.

The new industrial platform has been focused on the nationwide rollout of world-class factory and warehouse properties for lease throughout Vietnam’s key manufacturing and logistics markets.

Paul Tonkes, industrial deputy director of Indochina Kajima, said that despite the economic headwinds, the momentum for investors to opt for leasing will remain strong in the coming years, amplified by regional and global megatrends.

“The still soaring demand means we need to grasp this opportunity the right way,” he said. “Supported by the fact that Vietnam has a healthy supply of millions of square metres of ready-built/turn-key factories with international standard helps, in addition to advanced infrastructure development, a high-quality, affordable workforce, and suitable compelling incentives and business support.”

“This all, underpinned by the strong fundamentals of Vietnam and the growth potential of the industrial real estate market, led to the launch of Core5,” he added.

Core5 Vietnam offers its valued partners a range of solutions including ready-built factories for lease, ready-built warehouses for lease, and build-to-suit industrial properties. It offers a one-stop service, aiming to ensure a soft landing for new market entry into Vietnam for the venture’s valued tenants.

Key services include development and construction consultation from project managers, facility management advice from operation professionals, and licensing support to ensure timely business setup so manufacturing activities or logistics companies can launch their businesses quickly. Core5 Vietnam’s current portfolio has a total land area of about 90 hectares, including seven projects in the north and one in the south of Vietnam. When construction is completed, these projects will provide the market with a leasable area of about 700,000sq.m with a total development investment cost of nearly $450 million.

The first three projects in Vietnam are located along a unique economic corridor stretching from Hanoi via Hung Yen to Haiphong and Quang Ninh, and will offer nearly 228,000 sq.m of net leasable area for factories to the market between now and May 2024.

“This micro-ecosystem of like-minded occupiers is what we have named the Core5 Eco-Factory Village: a manufacturing community that combines the best of project locations, whether Quang Ninh, Haiphong, or Hung Yen,” Tonkes said. “This will eventually shine through in the service level of our industrial projects and should be as comprehensive as an affordable luxury hotel. It will include on-demand/pay-per-use services for our tenants, supported via partnerships to support these businesses in industrial zones, with end-to-end value-added services for operation, transportation, warehousing, and more.”

Foreign-led companies are increasingly looking to work with suppliers who share their commitment to sustainability. This includes sourcing materials and products from environmentally responsible suppliers and ensuring that suppliers adhere to sustainable practices throughout their supply chain. The Core5 Eco-Factory Village will be home to these types of companies, Tonkes said.

Indochina Capital is celebrating over 20 years of reshaping landscapes, redefining luxury, and bringing immersive destinations to Vietnam, such as Four Seasons Nam Hai, Six Senses Con Dao, Hyatt Regency Danang, Indochina Plaza Hanoi, and the Wink Hotels brand.

Kajima Corporation, founded in 1840, is one of the largest Japanese overseas real estate developers. Its global footprint operates through subsidiaries in North America, Europe, Asia and Australia.

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