Indochina Kajima launches Core5 Vietnam, a best-in-class industrial brand from the US
In July 6th 2022, Indochina Kajima Development Company, a joint venture from Indochina Capital and Kajima Corporation, officially launched Core5 Vietnam, a Vietnam based industrial real estate investment and development platform focused on the nationwide roll out of world class factory and warehouse properties for lease throughout Vietnam’s key manufacturing and logistics markets.
Bringing US industrial brand to Vietnam
Owned by Kajima Corporation, Core5 Industrial Partners is a US-based industrial real estate property company with expertise in development of Class-A properties featuring the latest innovations throughout the United States.
Headquartered in Atlanta, Georgia, Core5 has development activities in the United States core markets and has expansion plans to additional key logistic hubs throughout the country. Amazon, Walmart, Home Depot, Duracell, UPS, DSV, American Standard and Toshiba are some tenants of Core5 Industrial Partners, to name but a few. Following the success of Core5 Industrial Partners in the United States, Core5 brand is expanding into Vietnam, one of Asia’s fastest growing manufacturing and logistics hub.
Commenting on the market opportunity presented by Vietnam’s burgeoning manufacturing and logistics sector, Mr. Keisuke Koshijima, Representative Director and Executive Vice President of Kajima Corporation said: “From a global perspective, Vietnam is one of the world’s fastest growing economies and is underpinned by strong fundamentals, namely a large, young, and growing population. A key to the country’s economic rise within the region is the manufacturing sector which accounts for over one third of Vietnam’s overall GDP and the outlook is attractive given the supply chain shift from China which has led to several prominent manufacturers relocating to Vietnam. This was highlighted by Apple’s recent shift of iPad capacity to Vietnam, a trend we expect to continue for other electronic giants. The established manufacturing industry combined with the rapidly growing e-commerce sector create favorable market conditions for the expansion of the Core5 brand into Vietnam”.
The launch of Core5 Vietnam marks the first industrial venture from Indochina Capital, one of Vietnam’s leading real estate development and investment firms. Peter Ryder, Indochina Capital’s CEO, said at the launch event: “Indochina Capital has been operating in Vietnam for over two decades, and has developed iconic and pioneering projects across Vietnam, such as Four Seasons Nam Hai, Six Senses Con Dao, Hyatt Regency Danang, Indochina Plaza Hanoi, and the Wink Hotels brand. With the same commitment to innovation, sustainability, and value creation we have applied to our past projects, Core5 Vietnam plans to roll out a collection of exceptional industrial assets across Vietnam’s key manufacturing markets. Our belief in the market opportunity presented by the industrial sector in underpinned by our long-term vision to invest US$1 billion into this sector over the next 5-7 years.”
Setting international standards for Vietnam’s industrial projects
Core5 Vietnam offers its valued partners a range of solutions including ready-built factory for lease, ready-built warehouse for lease and build-to-suit industrial properties. Core5 Vietnam offers one-stop service aiming to ensure soft landing for new market entry into Vietnam for our valued tenants. Key services include development and construction consultation from project managers, facility management advice from operation professionals, and licensing support to ensure timely business setup so manufacturing activities or logistics companies can launch their businesses quickly.
Paul Tonkes, Industrial Deputy Director of Indochina Kajima, said “Headquartered in Hanoi and with offices in Ho Chi Minh and Danang cities, Core5 Vietnam has a growing team of project management, leasing, and facility management professionals focused on delivering superior quality through all phases of the project life cycle with focus on construction quality, exceptional design, sustainability and value-added services. We understand our relationship with tenants, clients, and partners is much more than simply leasing space, it’s a partnership, and we plan to draw on Indochina Kajima’s experience in the hospitality sector to offer unparalleled services for our clients”.
Core5 Vietnam plans to roll out factories and warehouses for lease in current and up-and-coming manufacturing and logistics hubs throughout Vietnam. The firm’s current portfolio covers 90ha of land including 7 projects in North Vietnam and 1 project in the South Vietnam. At construction completion, these assets will comprise a total net leasable area of approximately 700,000m2 and will amount to ttal investment cost of nearly US$450 million. Core5 Vietnam’s first project in Vietnam, located in a prime location within Deep C Hai Phong 2, will offer nearly 96,000m2 of net leasable area to the market. Construction of this project will commence in July 2022 and handover of the first factories will be in Q1, 2023.
