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Warburg Pincus teams up with Becamex

Released at: 23:57, 14/02/2018

Warburg Pincus teams up with Becamex

Photo from vtv.vn

Affiliates of both create joint venture developing institutional-grade industrial and logistics properties around Vietnam.

by Linh San

Warburg Pincus, a leading global private equity firm focused on growth investments, and the Becamex IDC Corp. (Becamex), the largest real estate and infrastructure developer in Vietnam, announced on February 13 that affiliates from both have formed a joint venture, the BW Industrial Joint Stock Company (BWID), focusing on the development of institutional-grade industrial and logistics properties around Vietnam.

With a best-in-class management team, sizable land holdings, and a robust pipeline, BWID is well positioned as a fully integrated platform to capture the robust demand for modern logistics warehouses, build-to-suit and ready-built factories, and other industrial facilities with a focus on key economic and industrial zones driving growth in Vietnam.

“With the transformative shift of manufacturing bases 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 its early day and at an inflection point for outsized growth,” said Mr. Jeffrey Perlman, Managing Director and Head of Southeast Asia at Warburg Pincus. “We are excited to partner with Becamex to leverage their unrivaled local sector knowledge and experience to build a leading platform in Vietnam.”

Warburg Pincus began investing in Southeast Asia in 2013, with Vietnam as its maiden market. Since then it has committed over $1 billion in the region, including in Vincom Retail, Lodgis Hospitality, ARA Asset Management, Go-Jek, NWP, and Trax, among others. Vincom Retail, a joint venture retail platform established between Vingroup and Warburg Pincus in 2013, has grown into the largest shopping mall developer and operator in Vietnam. Its highly successful $740 million listing on the Ho Chi Minh Stock Exchange last November was the largest-ever IPO in the country.

Established in 1976, Becamex specializes in developing large-scale industrial townships and has one of the largest industrial land banks in key markets around Vietnam.

Over the last 20 years, it has been a pioneer in the industrial real estate sector in Vietnam, with the creation of over ten world class industrial parks with Fortune 500 companies as existing business partners and clients. It has formed a number of partnerships with foreign players such as the TOKYU Corporation, a major Tokyo-based infrastructure developer, and Sembcorp, a Temasek-sponsored industrial group, through the Vietnam Singapore Industrial Park (VSIP), which is now widely recognized as one of the most successful industrial park developers in Vietnam with over $10 billion of investments to date.

“We believe that recent government policies, including significant trade deals, and a strong focus on infrastructure have transformed Vietnam into one of the world’s most attractive investment destinations, which in turn will continue to create outsized demand for modern institutional-grade industrial and logistics properties and services,” said Mr. Nguyen Van Hung, Chairman of Becamex.

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