Frasers Property Vietnam (FPV) announced on March 1 its partnership with local multi-sector investment holding company the Gelex Group to grow its industrial portfolio and build its presence across northern Vietnam, with total combined investment of approximately VND6 trillion ($250 million).

FPV will initially add 80 ha of prime, strategically-located industrial land to its land bank, to be eventually developed into more than 500,000 sq m of international-grade ready-built factories, warehouses, and build-to-suit facilities. This is in response to seeing significant international interest in more industrial space within the region as well as growing demand for high-quality, premium industrial estates. Active in eight markets across Asia, Australia, and Europe, industrial and logistics is the Frasers Property Group’s largest asset class.

The portfolio expansion represents Frasers Property’s long-term commitment to Vietnam’s economic development. In early February, FPV established a representative office in Hanoi to support its business expansion plans for industrial, commercial, and residential assets in the northern region.

According to Mr. Lim Hua Tiong, CEO of Frasers Property Vietnam, Frasers Property look forward to working with a like-minded partner such as the Gelex Group to expand its industrial portfolio and further develop its industrial capabilities. Frasers Property has a global track record and expertise in the industrial and logistics space. “We are confident that our quality industrial spaces developed to international specifications and catering to tenants’ business needs will add value to Vietnam’s northern key economic zone,” he added.

Similarly, Mr. Tuan Nguyen, CEO of the Gelex Group, said he is confident that Gelex, a leading industrial production and infrastructure group in Vietnam, in joining hands with an experienced and international real estate partner like Frasers Property Vietnam, will create sustainable industrial developments for the long run. “Gelex and Frasers Property Vietnam’s comprehensive relationship now and in the future provides momentum for further projects to grow together, particularly in establishing excellent industrial parks in Vietnam to fulfill the rising expectations of clients,” he said.

Tapping Frasers Property’s global expertise in the industrial and logistics sector as well as Gelex’s leading position in the industrial real estate investment market in Vietnam, the cooperative arrangement will develop smart, modern, and sustainable industrial facilities in the country to cater to a new segment of premium industrial estates - a first in the country.

Developments under the Premium Estates concept will consist of high-quality industrial facilities with strong sustainability and technology features aimed at supporting workplace productivity and occupiers’ health and well-being. The developments will also aim for international green building certifications in line with Frasers Property’s sustainability targets.

In addition, Frasers Property also focuses on pursuing sustainable innovation in real estate and is in the business of developing future-ready industrial facilities in Vietnam aligned with its Group-wide sustainability goals, which is to be a net-zero carbon organization by 2050.

“While doing our part for the low-carbon transition, 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,” Mr. Lim said. “This also aligns with the Vietnamese Government’s 2022 Decree No. 35 on the management of industrial parks.”