A leading German injection moulding player, framas, has taken on a 20,000 m2 ready-built property at KTG Industrial Nhon Trach 2 in Dong Nai Province. Signed at the end of Viet Nam’s most serious Covid-19 outbreak, this 10-year lease represents the continued strength of the Vietnamese economy and the industrial real estate sector.
The tenant, framas, is a leading producer of high-performance plastic components for the footwear sector with an international portfolio spanning over seven countries. With customers like Nike, Adidas, and New Balance, framas required a state of the art facility with a professional landlord.
Mr Fabian Urban, Director of framas footwear technologies in Viet Nam said: “The quality of the facility and KTG Industrial’s professional approach is far superior to other providers in Viet Nam and Southeast Asia. Our new facility in Nhon Trach 2 will allow us to keep up with increasing demands. As people are our most valuable resource, we look forward to expanding our footprint in Viet Nam thanks to the country’s growing professional workforce.”
KTG Industrial is an established ready-built factory and warehouse developer known for its high-quality facilities that meet international quality and safety standards. It will provide a full-service property as well as management, security, and administrative support services.
Mr Justin Dang, General Director of KTG Industrial said: “We would like to congratulate framas on their expansion. It is an honour to be selected as their real estate partner as we are aware of the strict standards they apply when selecting vendors. We will continue to strive to meet the demands of high-profile clients like framas by focusing on the quality of our facilities and services.”
John Campbell, Associate Director, Head of Industrial Services at Savills Viet Nam, said: “This deal indicates an interesting shift in the market, where occupiers are leasing large ready-built facilities. Previously, requirements of this size would warrant a long-term land lease and construction by the tenant, but we’re seeing companies select quick, flexible, and less capital-intensive routes of renting ready-built assets. Dong Nai is catering to these needs, as it is the leading ready-built provider in southern Viet Nam and has 615,000 workers in its industrial parks. As developers wait for international companies to relocate to Viet Nam in 2022, it is promising to see multinational occupiers, already settled here, expand, and diversify their production capabilities. This partnership marks the meeting of two esteemed companies, and we wish them the best of luck!”
Are you looking for a ready-built solution for your company? Contact our Industrial Services team for more information. https://industrial.savills.com.vn/contact/