An artist's impression of LOGOS logistics centre in the VSIP Bac Ninh Phase 1 Industrial Park in the northern province of Bac Ninh. — Photo courtesy of LOGOS
LOGOS has completed its first acquisition in Viet Nam, acquiring a 13-hectare development site located in greater Ha Noi. The acquisition follows the establishment of its LOGOS Viet Nam Logistics Venture last month which has an initial forecast portfolio of approximately US$350 million by gross asset value.
Located within the VSIP Bac Ninh Phase 1 Industrial Park, the site offers immediate access to the 1A national highway and surrounding transport networks, and is 35 minutes from the capital and Noi Bai International Airport and 1.5 hours from Hai Phong Seaport. The site is considered one of the key logistics locations in Ha Noi and is strategically positioned for LOGOS’ customers.
Subject to relevant planning approval, LOGOS proposes to develop the site on both a speculative and build-to-suit basis, delivering up to 80,000sq.m of high specification logistics facilities. On completion, the LOGOS Bac Ninh Logistics Estate will have an estimated end value of circa $70 million.
Glenn Hughes, Head of LOGOS Viet Nam, said: “We are pleased to have acquired our first development site, having spent the last two years assessing the local market and following the establishment of our Viet Nam venture in August.”
“Our decision to invest in the VSIP Bac Ninh Phase 1 Industrial Park was reinforced by major occupiers having existing facilities within the park, including FM Logistic, Emergent Cold, LinFox and DB Schenker. We believe the property is well suited to service the growing demand from international and local logistics operators within the greater Ha Noi region and are confident we can set a new benchmark for the Viet Nam logistics market in terms of high-quality logistics buildings to meet this demand,” Hughes added.
LOGOS is currently in discussion with a number of existing and new customers regarding the site.
The Viet Nam logistics market continues to experience strong growth driven by global trade wars, decentralisation of supply chains and natural evolution of the market. Viet Nam has led a successful response to the COVID-19 pandemic and is well positioned to rebound for further growth. Occupier demand, driven by ecommerce and third-party logistics operators, remains solid as occupiers are starved of suitable logistics facilities to sustain the growth of their business operations.
LOGOS’ Asia Pacific portfolio comprises 100 logistics sites across nine countries with AUM of approximately $9.5 billion. LOGOS counts some of the world’s largest fund managers as its shareholders, including ARA Asset Management, a leading Asia Pacific real assets fund manager with a global reach, which took a majority stake in the company in March 2020. — VNS