Forchn completes first land acquisition in Indonesia, officially entering Southeast Asia market
Forchn Holdings has signed a land sell and purchase agreement with The 3M Company, an America multinational conglomerate corporation in the fields of industry, worker safety, health care and consumer goods. Mr Koh Chaik Ming, CEO of Forchn International and Ms Ella Wei, Deputy CEO of Forchn International attend the signing ceremony in Jakarta, Indonesia. The transaction is Forchn’s first property acquisition in Southeast Asia, making its debut in the logistics real estate market in the region.
The subject property is located in West Java Island, the world’s most populous island which is home to approximately 54% of Indonesia’s total population of 260 million people. The population of Java Island is projected to grow to 167 million people by year 2035. Java Island also plays a big role in the economy of Indonesia as it contributes approximately 58% of the country’s GDP.
The subject property is a 37,535 m2 industrial land with 7,271 m2 of old buildings located in Bekasi Regency, 20km from central Jakarta. Post-acquisition, Forchn will tear down the existing buildings and redevelop a single-floor modern logistics warehouse on the original site.
Based on preliminary communication potential tenants such as third-party logistics service providers, the property is in an ideal location for their distribution center mainly due to the following reasons
(1) Near metropolitan area with a high population, allows for shorter order fulfilment lead time.
(2) Near industrial parks with many suppliers and factories, allows for easy inventory replenishment.
The transaction marks Forchn’s first property acquisition in Southeast Asia, which is one of the fastest growing regions in the world with its vast population with optimal population structure, internet-savvy millennial and rising middle class.
The industrial real estate sector in Southeast Asia has great prospect as demand arises rapidly due to the migration of supply chain from China and explosive growth of E-commerce in the region. Forchn will continue to invest in countries such as Indonesia, Vietnam, Philippines and Thailand.