The joint venture worths up to $270 million
Private equity giant Actis has forged a joint venture agreement with Vietnam-based environmentally-friendly plastic producer An Phat Holdings (APH). Actis will invest $20 million in An Phat Complex, a subsidiary group of APH. The investment will develop An Phat 1 Industrial Park, spanning over 180 hectares. Actis and APH will also develop a ready-build factory and warehouse worth $250 million. An Phat 1 is one of the two industrial parks owned by APH in Hai Duong province. It is currently looking for “site clearance” to begin construction work by the third quarter of 2021. It plans to attract 50-70 manufacturing plants and warehouses, and create jobs for about 12,000 workers.
An Phat Holdings and Actis
“An Phat 1 begins a long-term strategic partnership between APH and Actis. Actis will provide not only the initial capital, but also resources to implement new projects and maximise the potential of the industrial real estate segment for the area. Sharing the same goal of developing environmentally friendly industrial parks, APH and Actis will co-operate to develop industrial zones as well as ready-built factories and warehouses for lease, building the leading logistics centres in Hai Duong, Nothern Vietnam,” said Dinh Xuan Cuong, Vice Chairman & CEO of APH. APH had a market capitalization of $414 million as of October 2020. It was listed on Ho Chi Minh Stock Exchange 2020. The company’s two main subsidiaries are An Phat Bioplastics and Hanoi Plastics. In 2018, An Phat Holdings received an investment of $15.6 million from Korean asset management company Valuesystem.
Actis is investing in sustainable infrastructure projects across the globe. “The industrial and logistics sector is consistent with our strategy to invest in Asian and global growth markets. We see compelling opportunities to pursue our build-to-core strategy in this sector. It reinforces the 4Ds: demographic shifts, digital disruption, deficient supply, demand for yield. Vietnam’s industrial and logistics real estate market is poised for outsized growth given the sustained relocation of manufacturing bases from markets like China, strong growth in domestic exports and imports, and an accelerating shift to e-commerce retailing,” said Brian Chinappi, Actis’ Head of Asia real estate.
Sources of information include DealstreetAsia and VnEconomy.