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Warburg Pincus & Becamex IDC establish JV

Released at: 08:47, 16/05/2018

Warburg Pincus & Becamex IDC establish JV

Photo: Becamex IDC

Two launch largest 'for-rent' industrial and logistics joint venture in Vietnam.

by Hong Nhung

Warburg Pincus, the leading global private equity firm focused on growth investing, and the Becamex IDC Corp., the largest industrial real estate developer in Vietnam, announced on May 15 the official launch of their joint venture in Vietnam, the BW Industrial Development JSC.

With over 200 ha of projects under development and initial investment of more than $200 million, BW Industrial is the largest “for-rent” industrial and logistics developer in Vietnam.

BW Industrial was seeded with eight projects across five cities and provinces in each of Vietnam’s strategic industrial hubs both in the north and the south, including Binh Duong, Dong Nai, Hai Phong, Hai Duong, and Bac Ninh. The joint venture combines the unparalleled strength and experience of its joint venture partners and is committed to building the leading national real estate platform and “for-rent” industrial and logistics developer.

“As Vietnamese enterprises steadily improve their technical expertise, there is tremendous opportunities for firms like BW Industrial to develop and provide much-needed industrial properties to support such initiatives,” said Mr. C.K. Tong, CEO of BW Industrial.

“With a best-in-class management team, sizable land holdings, and a strong pipeline of future projects, BW Industrial aims to satisfy the rising demand for modern logistics warehouses, build-to-suit and ready-built factories, and other industrial-related products across all key industrial zones, being a catalyst in driving Vietnam’s economic growth. We will be a key force in the industrial and logistics real estate sector, driving the development and upgrade of other sectors such as manufacturing, logistics, and processing during Industry 4.0.”

According to figures from the Ministry of Industry and Trade, the processing and manufacturing sector continues to be the dominant force in the country’s industrial landscape. Exports rose 22.4 per cent in 2017 to $173.5 billion, accounting for more than 81 per cent of the total. Of this, the export of mobile phones and spare parts reached $45.1 billion, up 31.4 per cent from the previous year and was the largest contributor of exported goods. Exports of computers and electronics totaled $25.9 billion, up 36.5 per cent from 2016.

“BW Industrial’s focus is to support the sustainable development of Vietnam’s industrial upgrade and become a critical player in the global supply chain,” said Mr. Nguyen Van Hung, Chairman of Becamex. “With the objective of providing value-added services to key sectors through our joint venture platform, BW Industrial is committed to providing first-class, modern real estate solutions for investors and industries such as automotive, electronics, leather shoes, and garments and textiles.”

BW Industrial’s plan is to create the logistics and industrial platform of choice for leading multi-national corporations (MNCs), third-party logistics (3PL) providers, and e-commerce companies, according to Mr. Jeffrey Perlman, Managing Director and Head of Southeast Asia at Warburg Pincus. “With a sizable population of nearly 100 million people and an increasingly diversified economy, manufacturing and domestic consumption have become the central areas of growth for Vietnam,” he said. “We feel that our timing is just right to tap into these growth opportunities, with the goal of taking Vietnam’s industrial and logistics value chain to the next level.”

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