Industrial real estate on growth agenda of Indochina Kajima

Indochina Kajima, a joint venture between Indochina Capital and Kajima Corporation of Japan, last week held the groundbreaking ceremony for the Core5 project in Deep C 2 Haiphong Industrial Zone. At completion, the initiative will deliver a total of approximately 96,000 square metres of world-class ready-built factories and warehouses for lease. Handover of the first facilities is expected in the second quarter of 2023.

Core5 Haiphong provides ready-built factories and warehouses with terraced designs and various unit sizes, ranging from just over 3,000sq.m to over 25,000sq.m. To maintain a commitment to sustainable development, the project design has been implemented to optimise energy and water system efficiency, including the use of solar panels.

Each unit will be equipped with a factory area, truck loading zones, modular office, and parking. The common areas will provide ample circulation, green areas, and service areas to ensure tenants can maximise productivity. In addition, to ensure the efficient and smooth setup and establishment of clients, Core5 Haiphong provides its clients with turn-key support including fitting-out, accounting, operations, and business development.

Keisuke Koshijima, representative director and executive vice president of Kajima Corporation, said Haiphong has made enormous infrastructure investments, becoming a key link in the global logistics chain with Cat Bi International Airport, Lach Huyen International Deepwater Seaport, and direct access to Hanoi via Haiphong Highway. In the process, it has attracted the presence of many large-scale manufacturers, among them LG and Pegatron.

Core5 Haiphong will offer world-class factories and warehouses for lease next year

“We believe Haiphong is an excellent location for investment and ideal for the launch of Core5 Vietnam’s first project,” confirmed Koshijima.

In addition, Haiphong’s economic growth is very attractive as GDP in the first half of 2022 increased by 11.1 per cent on-year, while foreign direct investment in the northern port city reached nearly $1.1 billion.

Peter Ryder, CEO of Indochina Capital, said that the belief in the Haiphong market is supported by its investment into the hospitality sector with Wink Hotels in the city, and now in industrial real estate with Core5 Haiphong. “We believe in the current and long-term potential of this market, given the excellent economic fundamentals and the attractiveness of this location for export processing enterprises, and its strategic location to several key ports within northern Vietnam,” Ryder explained. “This, combined with the supply chain shift from China to Vietnam, bodes well for the manufacturing sector in northern Vietnam and Haiphong in particular.”

With the same commitment to innovation, sustainability, and value creation it has applied to past projects, Core5 Vietnam plans to roll out a collection of exceptional industrial assets across Vietnam’s key manufacturing markets. “Our belief in the market opportunity presented by the industrial sector is underpinned by our long-term vision to invest $1 billion into this sector over the next 5-7 years,” added Ryder.

The next steps for Core5 Vietnam will be the groundbreaking of projects in Hung Yen and Quang Ninh provinces early next year. Both of these projects will add approximately 127,000sq.m net leasable area of ready-built factories and warehouses to the market. Multiple additional projects will commence in later 2023 and beyond.

Also last week, Indochina Kajima started construction of the sixth Wink Hotel in the centre of Haiphong, comprising 203 hotel rooms and 77 suites and serviced apartments within a stunningly designed 22-story tower of approximately 16,000sq.m, appealing to young-at-heart business and leisure travellers.

With a long-term vision and unwavering commitment to investing in Vietnam’s hospitality market, Indochina Kajima plans a pipeline of 20 hotels to open within the next 5-7 years. Wink Hotel Saigon Centre opened in 2021, and two Wink Hotels in the central city of Danang are about to complete construction and start operation in the last quarter of this year and next year, respectively.

In tandem, the construction of Wink Hotel Can Tho and Wink Hotel Tuy Hoa is also progressing, targeting to commence operations in the first quarter of 2024. After Wink Hotel Haiphong officially breaks ground, Hanoi, Binh Duong, and Vung Tau will be the next destinations for development, followed by second properties in both Hanoi and Ho Chi Minh City.