Groundbreaking of Core5 Project in Haiphong: A New Era for Industrial Real Estate
Indochina Kajima, a prominent collaboration between Indochina Capital and Japan’s Kajima Corporation, recently made headlines with the groundbreaking ceremony for the Core5 project in the Deep C 2 Haiphong Industrial Zone. This ambitious initiative is set to transform the landscape of industrial real estate in the region, offering a substantial 96,000 square meters of ready-built factories and warehouses available for lease. The first facilities are projected to be handed over in the second quarter of 2023, marking a significant milestone in the area’s development.
Features of Core5 Haiphong
Core5 Haiphong is designed to cater to the growing needs of businesses with a modern and efficient layout. The project will feature terraced factory designs, which will vary in unit sizes from just over 3,000 square meters to an expansive over 25,000 square meters. These ready-built factories and warehouses promise not only functionality but sustainability, incorporating advanced energy and water system efficiencies, including solar panels to reduce environmental impact.
Each unit will come equipped with essential features such as dedicated factory space, truck loading zones, modular offices, and parking facilities. The layout includes common areas aimed at promoting productivity, complete with green spaces and service zones. Core5 also recognizes the complexities involved in establishing a business, which is why it offers turn-key support services that cover everything from fitting-out to operations and business development.
Strategic Location and Economic Potential
Keisuke Koshijima, the representative director and executive vice president of Kajima Corporation, emphasized the strategic significance of Haiphong. The city has undergone substantial infrastructure investments and serves as a crucial link in the global logistics network, boasting the Cat Bi International Airport and the Lach Huyen International Deepwater Seaport, alongside quick access to Hanoi via the Haiphong Highway. This connectivity has successfully attracted global giants such as LG and Pegatron to set up operations in the city.
Moreover, Haiphong’s economic landscape is on the rise, with GDP growth recorded at an impressive 11.1% year-on-year in the first half of 2022. Foreign direct investment reached nearly $1.1 billion, showcasing its attractiveness for businesses looking to establish a foothold in the region.
Confidence in Haiphong’s Market
Peter Ryder, CEO of Indochina Capital, believes in Haiphong’s potential, stating that their investment strategy spans beyond industrial real estate. The development of the Core5 project aligns with their previous hospitality investments in the city, particularly with the Wink Hotels brand. Ryder is optimistic about the market’s current and long-term potentials, particularly in light of the ongoing supply chain shift from China to Vietnam. This shift bodes well for the manufacturing sector, especially in Northern Vietnam and Haiphong.
Commitment to Sustainability and Innovation
Core5 Vietnam maintains its commitment to innovation, sustainability, and value creation, principles it has consistently upheld in its other projects. The company has set a long-term goal to invest $1 billion into industrial assets across Vietnam, signifying their confidence in the industrial sector’s growth.
In addition to the Core5 project, Core5 Vietnam plans to break ground on future projects in Hung Yen and Quang Ninh provinces, expected to add roughly 127,000 square meters of net leasable area. These forthcoming developments highlight the ongoing demand for industrial facilities in the region, while also preparing for additional projects slated to start later in 2023.
Hospitality Ventures: Wink Hotels Expansion
Alongside the Core5 initiative, Indochina Kajima has also commenced construction on the sixth Wink Hotel in central Haiphong. With 203 hotel rooms and 77 suites/serviced apartments within a striking 22-story tower, this project is designed to cater to both business and leisure travellers. It highlights the company’s commitment to a balanced portfolio that encompasses both industrial and hospitality sectors.
Furthermore, Indochina Kajima envisions a pipeline of 20 Wink Hotels to be developed over the next 5-7 years, demonstrating a robust belief in the domestic hospitality market. Recent openings include Wink Hotel Saigon Centre and two impending hotels in Danang. Additional projects are on the horizon, with plans to expand to other key locations such as Hanoi and Vung Tau.
This ambitious vision combined with strategic investments showcases Indochina Kajima’s commitment to fostering economic growth and infrastructure development in Vietnam.