CBRE Vietnam Capabilities - Industrial & Logistics Services by CBRE-SEA

VIETNAM

Industrial & Logistics

ADVISORY AND TRANSACTION SERVICES

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

The Global Market Leader With broader and deeper capabilities, CBRE is the leading full-service real estate services and investment organization in the world. We have more than 100,000 dedicated real estate professionals in over 530 offices globally. Our global network keeps us close to our markets and better positioned to serve your commercial real estate needs. With an annual revenue exceeding US$23.8 billion, we have the resources to help solve your most complex real estate challenges. Our range of end-to-end services and real estate expertise help in delivering advantage for every client we partner with.

122

2021 Fortune 500 Ranking

US$+23.8B 2020 Global Revenue

+90 6.1B Of The Fortune 100 are CLients

Square Feet Under Management

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

Industrial and Logistics Our team provides a complete range of services for occupiers, property owners and investors. We cover the full gambit of industrial requirements from industrial lands to hi-tech and industrial manufacturing facilities, logistics centers, data centers, and beyond for sales or lease, existing or built-to-suit.

130,000 SQM of Industrial Space under Exclusive Leasing Mandate

220,000 SQM of Vacant Possession Industrial Properties under Exclusive Sales Mandate

With extensive network and local market know-how and being the largest team in market with proven track record over 10 years in Vietnam in North, South and Central region, we assist our client and landlord from the early stage of site sourcing until transaction conclusion.

210,000 SQM OF LEASES TRANSACTED IN 1H - 2021

In addition, CBRE Vietnam is proud to provide Landlord Representation services to assist Landlord/ Investors in leasing their properties by leveraging our strong marketing and leasing expertise..

IS NOW

LARGEST

DEDICATED INDUSTRIAL TEAM IN VIETNAM

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

Global Scale CBRE’s Global Industrial & Logistics team is made up of over 1,419 real estate professionals across 527 offices and 60 countries. We have completed over 10,000 leasing deals globally and US$37.3b in transaction. We are currently number 1 globally in market share across the top 10 industrial markets, and also number one in Pacific region.

A TEAM OF MORE THAN

1,419

PROFESSIONALS IN

Powerful Connections As the global leader in the Industrial & Logistics market, we currently work with 88 Fortune 100 clients. Our regional and global connectivity provides us with direct access to a wide range of real estate professionals including supply chain experts and industry specialists, in areas such as E-Commerce, Port Logistics and Food Facilities Infrastructure, allowing us to provide specialized real estate solutions for our clients. With the Pacific team operating under a global umbrella we are able to leverage our expert knowledge of the local market with global best practice, providing us with a market leading platform to advise our clients

COUNTRIES

12 #1

YEARS IN VIETNAM

IN THE MARKET SHARE ACROSS

TOP

INDUSTRIAL & LOGISTICS MARKETS

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

Scope of Work Factory and Warehouse Leasing Our team is able to provide market leading strategic advice on leasing your asset to ensure maximum value is extracted. Through our proprietary databases we are able to analyze what sectors are active in the market in order to determine parties to approach to occupy your space, with our active relationships with all major occupiers in Vietnam market assisting us throughout the leasing process

Sale and Lease back transaction Increasingly corporate real estate occupiers are realizing capital tied up in their real estate assets by divesting of freehold interests and leasing their properties back on favorable, longterm leases. A sale and lease back provides the corporate occupier with an alternative revenue raising opportunity for investment in business expansion, new plant and equipment, research and development, debt reduction and financial restructuring. The competitiveness of the current investment market usually

enables a corporate owner occupier to extract a sum well in excess of the asset’s book value.

Owner Occupier Sales We can assist owner occupiers in extracting a premium result in the sale of their assets to allow them to re-allocate the funds into the areas in which they are most needed.

Acquisition Advice We are able to play strategic advisory role to assist you to fulfil your mandate when looking to purchase individual or multiple industrial assets. Our expertise in valuations and asset strategy allows us to guide you throughout the acquisition process to ensure you achieve your desired outcome.

Consulting We partner with industry specialists to provide supply chain information leadership by helping companies determine the right location, mission and business justification for their real estate

decisions. As our clients seek strategic advice earlier and earlier in the location decision process, focused supply chain services coupled with CBRE’s deep market facing market safeguards our client’s businesses.

Land Sale In conjunction with our network of planning experts, we are able to partner with you throughout the land sale process, providing advice on how to position your land parcel to ensure it is meeting the current needs of the industrial market. Our market leading databases ensure we have a wealth of information that assist us in guiding you as to current market trends and active occupiers, along with site / building sizes currently required by the market.

Pre-sale and Build to suit On behalf of Industrial & Logistics property occupiers, we offer a full-service pre-sale and “build to suit” process, from the initial inception of the need for the new building until the occupier move to

their purpose-built facility. In the initial stage, which is generally 2-3 years out from current lease expiry, we work with the occupier to determine the optimum location and space requirements, that will maximize future profitability of their business. This is achieved with both internal (e.g. CBRE market knowledge, Mapping Centre, Research etc.) and external (e.g. Supply Chain or appropriate industrial consultant) resources to assist in providing a complete picture of both the market and potential business impacts of various location and design solutions to extract a sum well in excess of the asset’s book value. From here we construct a project brief to take to the market and utilize our extensive networks to capture the most suitable opportunities, both existing and purpose built, for the occupiers needs. We then review all opportunities, including detailed financial analysis, and work through a short-listing process until the very best option is determined and the optimum commercial terms are secured.

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

CBRE Network Regional Expertise CBRE is the world’s largest commercial real estate services firm. With over 530 offices in 100 countries, our extensive global network enables us to deliver a seamless and consistent client experience across all markets. Our Asia Pacific Advisory & Transaction team operates across all major commercial real estate sectors in key locations and our in-depth market knowledge and cultural insights have led to strong track records in the region. We can connect you with the right people, the right resources and capital, assisting you to execute optimum investment strategies. Our team of experts bring together a unique combination of transactional, corporate and operational experts with unrivalled knowledge of every aspect of the real estate sector.

Regional & Global Support USA

VIETNAM

Quah Rebecca

Hieu Le

Managing Director

Senior Director

CHINA

JAPAN

He Jack

Yoshida Fumio

Director

Senior Director

INDIA

KOREAN

Gipson Paul

Lee JiHyun

Executive Director

Senior Director

SINGAPORE

THAILAND

Bolin Graeme

Bell Adam

Senior Director

Director

AUSTRALIA

CAMBODIA

Trevor Ogrady

Hodge James

National Director

Managing Director

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INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

CASE STUDY READY-BUILT FACTORY LEASE

JABIL Background Transaction Year: 2021 Location: Ho Chi Minh City, South Vietnam Size: 15,000 sqm

Challenge To accommodate business growth, Jabil looks for a ready-built factory to expand their production line in Vietnam. The most important challenges of this project were timeline, location and leasable area. Jabil expects to secure a workshop with big size of 15,000sqm inside Saigon Hi-tech Park within 2 months and operate the trial production within 9 months.

How CBRE created advantage •

CBRE proposed the list of ready-built factories in both Saigon Hi-tech Park and other locations. It took a week from longlist to shortlist options. CBRE suggested our client to move forward with one shortlisted option and one back-up option as our strategy.

•

CBRE quickly assisted Jabil in technical due diligence to comply wit FM Global Assessment and in the meanwhile do commercial terms negotiation. After 2 weeks, the shortlisted option was not qualified to Jabil’s standard due diligence, so we immediately moved on the backup options.

•

With our market intelligent, extensive experience and comprehensive strategy, CBRE successfully secured to lease a high-rise building of 15,000sqm and rental package was extremely competitive within 60 days despite the limited supply of factory in Saigon Hi-tech Park.

•

CBRE assisted Jabil on preparation of presentation and documentation to seek internal approval. CBRE retained good relationship with Landlord to keep workshop spaces until the final approval was completed by Jabil.

•

CBRE coordinated on negotiation of commercial terms and legal terms to get mutual agreement and execution on Memorable of Understanding and Lease Contract.

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

CASE STUDY DISTRIBUTION CENTER EXPANSION

BW Industrial & Best INC Background BW Industrial, a leading industrial infrastructure developer in Vietnam, founded by Warburg Pincus and Becamex. BEST Inc. is a integrated smart supply chain and logistics solutions provider with intelligent IT and technology in rapid expansion in Vietnam Transaction Year: 2019 Location: North Vietnam Size: 23,000 sqm (Land)

Challenge Limit of Industrial land in Hanoi especially for Logistics / Warehouse development, or land inside industrial park Best Inc strategizing with BWID for built to suit project across Vietnam Land shape being suitable and potential for Best INC to develop the open warehouse High price of industrial land in Hanoi Tightly requested timeline.

How CBRE created advantage •

Prioritize accessibility to/from Hanoi and the industry targeted for logistics and warehouse for lease

•

Identify one potential location in the South of Hanoi and a land plot suitable for open warehouse design

•

Manage to secure the last vacant land plot for BWID and achieve favorable rental deduction for BWID

•

Carry out the detailed quantitative and qualitative measures, support BWID to complete the legal due diligence.

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

CASE STUDY LAND USE RIGHT DISPOSITION

Cargill Background Cargill is an agricultural and animal nutrition company based in the United States, being recognized on Forbes’ list of America’s Largest Private Companies Transaction Year: 2021 Location: Bac Ninh Province, North Vietnam Size: 110,000 sqm

Challenge Due to a shift in business tactics, the client was required to dispose 11ha of industrial land in Que Vo 3 Industrial Park, Bac Ninh Province. CBRE was tasked with facilitating the sale on a consulting basis, with the goal of maximizing Cargill’s transaction value within short period of time.

How CBRE created advantage Land disposition process required thorough analysis and financial assessment. Integrated plan was proposed to client taken account of all service delivery needs. CBRE conducted series of market studies to identify a suitable alternatives to maximize property value in future sale, including re-zoning, subdivision, redevelopment and some forms of legislative change. Utilizing intensive marketing tools, CBRE quickly promoted the land parcel and secure interest from both IP developer and buyers from secondary market. Throughout due diligence process and continuous meetings with local authorities, CBRE analyzed and consulted Cargill on challenges and difficulties in case of selling to secondary market, including possibility of land revocation. CBRE advised our client to sell back the property to IP developer, in the meantime, continued its feasibility studies on other candidates to discover potential buyers in secondary market. With CBRE comprehensive strategy and knowledge of local legislation, and using leverage from strong interest from secondary market, CBRE managed to support Cargill sell back the land to IP developer in a good timeframe and achieved the financial target.

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

CASE STUDY SALE AND LEASE BACK

Unilever Background Transaction Year: 2019 Location: South Vietnam Size: 100,000 sqm (land) | 68,000 sqm (building)

Challenge CBRE was tasked to dispose and lease back a manufacturing property in South Vietnam with distribution facilities for FMCG. Challenges include finding a perfect fit buyer and managing Industrial Park developer and the licensing authority to get them aligned to facilitate the transaction. Another challenge is to maximize disposition value while achieve desired rental for Unilever while managing to go through very COMPLICATED and UNCHARTED LEGAL and COMMERCIAL procedure complete the transaction in 2017.

How CBRE created advantage As part of the due diligence, CBRE engaged the licensing authority and the developer to guarantee the property can be transferred and how developer’s approval can be granted. CBRE also negotiated with developer to develop a disposal & lease back model that defines clearly critical steps and each party’s responsibilities. In parallel, several marketing and sale initiatives were implemented to provide the property the full market exposure and make sure all parties, including 3rd parties agencies are strongly incentivized to actively market the asset and introduce prospective buyers. CBRE indeed wen through 02 rounds of tenders in 02 years to eventually find the Best Buyer and hit the Value desired by Unilever. By utilizing our integrated approach, CBRE Vietnam Industrial & Logistics Services closed the transaction at a price that gives its Client a commercially viable exit by its planned timeline in 2019.

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

Our Clients

(2010 - 2021)

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

TRACK RECORD Exclusive Warehouse Project 2021

BAC GIANG INTERNATIONAL LOGISTICS CENTER Developer

Bac Giang International Logistics Co., Ltd

Location

Song Khe commune, Yen Dung District, Bac Giang Province, Vietnam

Total Land Size

71 ha

Warehouse for lease

Phase 1: 76,770sqm

Hand-over date

Q1 - 2022

2021

JD LOGISTICS PARK Developer

JD Property

Location

Tan Duc Industrial Park, Duc Hoa Ha Commune, Long An Province, Vietnam

Total Land Size

10 ha

Warehouse for lease

52,390sqm for 2 blocks

Hand-over date

Q3 - 2022

INDUSTRIAL AND LOGISTICS | VIETNAM CAPABILITIES OVERVIEW

How can we help?

Le Trong Hieu Senior Director (Vietnam) +84 908 047 414 tronghieu.le@cbre.com

Dao Danh Nhan Senior Manager (South) +84 903 933 103 nhan.dao@cbre.com

Phung Thi Thanh Loan Senior Manager (North) +84 934 651 838 loan.phungthithanh@cbre.com

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