ESR Cayman and Warburg Pincus-backed BW Industrial Development Joint Stock Company (BW), the logistics and industrial real estate developer and operator in Vietnam, have formed a joint venture to develop and own a significant modern industrial park near Ho Chi Minh City, Vietnam.
The partnership marks ESR’s first entry into the Vietnamese market, expanding the group’s APAC footprint in the high growth Southeast Asia region.
The My Phuoc 4 Industrial Park, which will have a total of approximately 240,000 sqm of logistics and light industrial facilities upon completion, is located north of Ho Chi Minh City in the strategic Binh Duong market, a leading hub of industrial development in Southern Vietnam.
The Park will have the ability to cater to a wide variety of local and international tenants, given its prime location with excellent motorway access and connectivity to densely populated areas, major industrial clusters, ports and airports.
BW is currently developing the My Phuoc 4 Park with completion scheduled for August 2021. ESR will work with BW on the leasing of the My Phuoc 4 Park leveraging its strong roster of customers.
”Vietnam’s industrial and logistics real estate sector is coming of age.”
“Vietnam’s industrial and logistics real estate sector is coming of age. It is one of the most promising markets within Southeast Asia, benefitting from a range of favourable macro-economic factors including its high and stable GDP growth rate, growing income level and thus emerging middle class, rapid urbanisation and infrastructure development. We are most pleased to make our first foray into the Vietnamese market with this meaningful joint venture with BW, the leading local logistics and industrial developer in Vietnam, which sets a strong foundation for our growth plans in the country,” said Jeffrey Shen and Stuart Gibson, ESR Co-founders and Co-CEOs.
“E-commerce is a very important positive tailwind that drives the demand for logistics real estate in Vietnam. We are very delighted to work hand in hand with ESR, leveraging our collective relationships, experience and track record in development and management, to capitalise on the opportunity for this project. As the Vietnam industrial and logistics property sector is entering a strong cycle of growth, BW is focused on continuing to be a pioneer in the market and accelerating our growth trajectory on the back of both greenfield developments, acquisitions and joint ventures. We believe that the firm is well positioned to capture the increasing opportunities as the demand for industrial spaces continues to grow,” added Lance Li, CEO of BW.