Daiwa House Industry Co., Ltd., one of the biggest real estate development companies in Japan, will spend VND483 billion ($19.9 million) on acquiring D Project Tan Duc 2, a cold storage facility in Vietnam’s Mekong Delta province of Long An.
In an announcement last week, the Japanese firm said its Singapore-based real estate investment trust Daiwa House Logistics Trust (DHLT) will conduct the move.
“This is a landmark transaction for DHLT as D Project Tan Duc 2 will be its first property outside Japan,” said Jun Yamamura, CEO of Daiwa House Asset Management Asia Pte. Ltd, the manager of DHLT.
The 41.3-hectare D Project Tan Duc 2, located in Tan Duc Industrial Park of Long An province, was completed in September 2023 and is now fully leased to a company specializing in frozen and chilled food transportation services.
The transaction value is about 3% lower than the evaluation of the property at VND498 billion ($20.52 million), DHLT said.
DHLT attributed the move to the current shortage of cold storage facilities in Vietnam, amid the higher demand for high-quality food in line with the growing middle class, the improving economy, and the rising e-commerce sector.
Long An province is a key hub for cold storage facilities in Vietnam, accounting for 27% of the total stock of cold storage space in the country in 2022, DHLT highlighted.