Warburg Pincus partners Vietnam’s Becamex IDC for $200m logistics JV

Vietnam
A woman looks out from a rooftop bar as traffic moves along a road in Hanoi, Vietnam. Photographer: Justin Mott/Bloomberg

Global private equity firm Warburg Pincus has set up a joint venture with Vietnam’s real estate and infrastructure major Becamex IDC Corp (Becamex) to develop institutional-grade industrial and logistics properties across the south-east Asian country, according to a statement.

The JV will be called BW Industrial Joint Stock Company (BWID). Both firms have committed $200 million to the industrial and logistics real estate platform.

Nguyen Van Hung, Chairman of Becamex believed that the cooperation with Warburg Pincus, a best-in-class private equity firm with deep experience in Asia, is a great opportunity.

“With the transformative shift of the manufacturing base from markets like China to Vietnam as well as with the rapid rise of domestic consumption, the logistics and industrial real estate market in Vietnam is in the “early innings” and at an inflection point for outsized growth,” said Jeffrey Perlman, Managing Director and Head of Southeast Asia of Warburg Pincus .

Warburg Pincus is one of the first private equity firms to recognize the need to transform the logistics value chain on the back of the rise of e-commerce nearly a decade ago and has invested in 28 companies along all high-growth segments of the value chain.

Vietnam was one of the maiden markets when Warburg Pincus started investing in Southeast Asia in 2013. The PE firm with $40 billion assets under management, invested $300 million in Vincom Retail, the largest shopping mall operator which is also a subsidiary of domestic property giant Vingroup.

Further, its highly successful $740 million listing on the Ho Chi Minh Stock Exchange last November was the largest-ever IPO in Vietnam.

Meanwhile, Becamex IDC, established in 1976, is the provincial infrastructure investment arm of Binh Duong, a hotspot for foreign-invested businesses. The company is Vietnam’s the leading industrial park and township developer, having interest in 23 subsidiaries and affiliates. It is the local partner with Sembcorp in the Vietnam Singapore Industrial Parks (VSIP) joint venture.

The industrial developer also partnered with Singapore’s Temasek to operate in hospital and healthcare service, education, retail and hospitality, telecommunications and startup incubator, and public transportation.

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