Realty Digest: Frasers expands in North Vietnam; Hines acquires cold storage property

Realty Digest: Frasers expands in North Vietnam; Hines acquires cold storage property

Binh Duong province, Vietnam. Photo by Vinh Thang on Unsplash

Frasers Property Vietnam has partnered with Gelex Group to build its presence across North Vietnam, while Hines has acquired its first cold storage property in Queensland.

Frasers Property partners with Gelex Group

Diversified property developers Frasers Property Vietnam (FPV) has announced its partnership with investment holding firm Gelex Group to jointly develop and operate more than 500,000 square meters of industrial spaces across North Vietnam.

The total combined investment of the partnership is approximately $250 million and will focus on delivering ready-built factories, warehouses, and build-to-suit facilities within the industrial parks, according to the announcement.

FPV, a subsidiary of Singapore-based realty major Frasers Property, established its representative office in Hanoi in early February to support its business expansion plans in the northern region.

The partnership also builds upon FPV’s first industrial park in southern Vietnam, the Binh Duong Industrial Park (BDIP) in Binh Duong province. BDIP will encompass over 230,000 square meters of industrial facilities developed around 110 hectares of industrial land by 2025.

Under the new agreement, FPV will initially add 80 hectares of industrial land to its land bank that will be developed eventually into more than 500,000 square meters of ready-built factories, warehouses, and build-to-suit facilities.

“We look forward to attracting higher value investments by bringing greater standards in industrial estates to Vietnam’s northern region with one-stop designs for build-to-suit solutions as well as ready-built factories and warehouses,” said Lim Hua Tiong, CEO of FPV.

Hines doubles down on cold storage sector

Houston-based real estate investor Hines has made its first acquisition in the cold storage sector in Queensland, Australia, through its flagship commingled Asia-Pacific core plus fund, Hines Asia Property Partners (HAPP).

The asset, located at 31 Lahrs Road in Ormeau, Queensland, is 11,175 square meters within an established industrial precinct that has turned into a hub for cold storage occupiers.

The deal marks the second acquisition by HAPP in Queensland and the seventh industrial and logistics asset acquired by HAPP in Australia, according to the announcement.

The investment comes as Hines sees increased demand for the cold storage sector not just in Australia but across the Asia-Pacific, on the back of a shift towards online grocery and meal deliveries.

“Investments such as these are vital as economies are recognising the importance of addressing the shortage in supply of reliable refrigerated facilities, particularly for the storage of fresh produce, vaccines, and other non-discretionary goods,” said Chiang Ling Ng, Chief Investment Officer, Asia, at Hines.

Since 2020, Hines has secured 11 logistics assets in the Asia-Pacific totaling 633,192 square meters over seven cities in Australia, China, Japan, South Korea, and Singapore.

Edited by: Joymitra Rai

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