British global emerging markets investment firm Actis and property developer An Phat Holdings will build the An Phat 1 Industrial Park in the northern province of Hai Duong.
An artist impression of An Phat 1 Industrial Park in Hai Duong Province. Photo courtesy of An Phat Holdings.
It would invest over $20 million in a joint venture with the Vietnamese firm’s subsidiary An Phat Complex to develop the industrial park with ready-built factories and warehouses for lease at a cost of $250 million, Actis announced Monday.
Construction is scheduled to start in July. Once operational in the fourth quarter of this year, it is expected to house 50-70 manufacturing plants with some 12,000 workers.
It is expected to achieve full occupancy by 2024.
Brian Chinappi, head of Asia Real Estate at Actis, said: "Vietnam’s industrial and logistics real estate market is poised for outsized growth given the sustained relocation of manufacturing bases from markets like China, strong growth in domestic exports and imports, and an accelerating shift to e-commerce retailing."
According to Savills Vietnam, industrial real estate and logistics are forecast to grow quickly despite the Covid-19 pandemic, with logistics assets providing returns of 9-11 percent.
By Anh Minh