All areas are approximate and as reported.
Long Hau Industrial (LHC) High rise factory complex was a result of a response to land constraints and the needs of industrial clients. LHC has launched the facility as part of an effort to assist small to medium enterprises. The factory complex will comprise 6 floors with loading dock and heavy goods (2) and passenger lifts (3) on the ground or what is commonly referred to as 1st floor (see floor plans). Floor clearances range form 5 metres on 1st floor and are 3 to 4.5 metres on levels 2 to 6. Floor loading capacity is 1,000 kg/sqm on 1st floor and 600/kg per sqm on floors 2 to 6. Cargo lift will carry 2.5 tons and passenger lifts are rated to 880 kg, security and surveillance is offered and amenities are on each level. End users can choose factory sizes from as little as 88 sqm most are 500 sqm to 800 sqm.
PROJECT SYNOPSIS by
Our overview of the product is positive in that we contend that not all light industrial users need factory and land. They also don't need the additional heavy construction costs and many require a large office component as they incorporate management, sales and marketing and distribution all in same facility. We have conducted a site inspection and the site is ready but construction is due to start 12.2018. The overall project design also follows international trends where re-location to cheaper location is desirable for certain business types. The benefits are in costs savings as the highest rent is US$6.50 per sqm per month for level 6 this would make any CFO re-think. Rents to start at US$4.5 per sqm per month. The developer has to date offered good product and stable facilities so track record is positive.
Location is about 15 minutes to District 7 or 10-12 kilometres so location is acceptable for a daily commute unlike other industrial locations. That means schools and retail are not that far away which has been in the past a negative factor for industrial park locations.
Ho Chi Minh CBD rents are only going to increase which in turn will force up decentralised office rents. This concept has merit for several factors in our opinion. High rated floors for most light industrial users, the ability to incorporate office and factory plus distribute directly from premises. This concept is well-known internationally and many companies seek out this type of premise the reasons as mentioned. We wil follow the progress of this development type. We have also listed below a primary contact for more information that what we provide.
The floor plates are also in our opinion flexible where you can rent a space as little as 88 sqm and multiple areas could be combined if a whole floor is need, whole floor is about 6,600 sqm (GFA). Floor efficiencies are good we calculated it at about 12%. The landlord seeks 6 year terms which is above normal but does provide security in tenure for new occupants.
In closing this is what most other regions would class as a business park and is we feel a new and necessary trend it will be interesting to follow leasing rates and also how other parks tackle the need for flexible and new industrial space requirement. Vietnam has not been able to venture into the Data Centre markets for technical reasons but this facility would suite that user or other IT types in our opinion. Worth consideration we feel particularly if you don't need expensive city rental rates and need good links to District 7 and Main roads for goods transport.
Long Hau Joint-Stock Company (Long Hau JSC) is the investor of Long Hau Industrial Park, Long Hau Industrial Park Extended, Long Hau Industrial Park 3. Long Hau JSC was incorporated by Tan Thuan Industrial Promotion Company (IPC) and Jaccar Capital Fund, Viet Au Corporation and Sadeco. Long Hau JSC is listed on Ho Chi Minh Stock Exchange (HOSE) with symbol LHG.
Established in 1989. Is a state-owned company established under Decision No. 183/QD-UB dated September 27, 1993 of Ho Chi Minh City People’s Committee. As from July 22, 2004 IPC commenced operation applying the same model as the parent company on a pilot basis specialising in projects of infrastructure development for EPZs, IPs, residential areas and new urban areas in Ho Chi Minh city and other provinces.
15th November 2018: The rental rates quoted were from US$4.5 to US$6.5 per sqm per month. The promotion incentives include free management if booked prior to November 2018 (2 years) if booked in December 2018 (12 months). Contract term of 6 years and LHC will obtain investment certificate and business licence free in the promotion period.