January 19, 2022 – BW Industrial Development Joint Stock Company (“BW”), Vietnam’s leading industrial and new economy real estate developer co-founded by Warburg Pincus and Becamex IDC, recently acquired approximately 74,000 square metres of prime landbank in the Bac Tien Phong Industrial Zone in Quang Ninh, developed by DEEP C Industrial Zones (“DEEP C”). This acquisition marks BW’s first footprint in Quang Ninh Province 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 the Bac Tien Phong Industrial Zone, 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 Hai Phong-Ha Long-China border expressway, the site is a short 15-minute drive to the Hai Phong Seaport Clusters and 2-hour trucking to the Mong Cai International Border Gate.
Given its prime location, extensive expressway networks, and excellent connectivity to densely populated centres, major manufacturing clusters, ports and airports, the project will be most ideally suited to export manufacturers and tenants seeking alternative port-based locations. The project is scheduled for completion in the second quarter of 2023.
Mr Lance Li, CEO of BW, said, “This project encompasses an approximate 237,455 square metres 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 Hai Phong’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; 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 clear and consistent growth strategy since its establishment, BW is the largest for-rent industrial platform in Vietnam with over 7.76 million square metres of prime 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 (GFA) of around 47,000 square metres to its portfolio, expanding its current GFA to 2.2 million square metres 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.
Mr Koen Soenens, General Sales and Marketing Director of DEEP C Industrial Zones, remarked, “The 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.”
New investments in ready-built factories have been flowing into DEEP C in Quang Ninh, especially the Bac Tien Phong Industrial Zone. “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.
Mr Hoang Trung Kien, Head of Quang Ninh Economic Zone Authority (QEZA), also commented about the deal, “With an array of advantages and lofty incentives, Quang Ninh Province, with an eye toward developing the Quang Yen Coastal Economic Zone, is ripe for industrial park and logistic project investments. BW is recognized for its commitment to supporting and creating the most favorable 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 laborers, and promote sustainable socio-economic development while benefiting the industry as a whole.”
The transaction is subject to relevant regulatory approvals.