Build-to-suit factory is a factory where the Lessor (or investor) has land and the factory is built according to the specific needs of the Lessee. The Lessor pays all costs for the project and is responsible for designing, constructing and completing the project. The Lessor still retains ownership of the land and factory.

Currently, the built-to-suit factory model (BTS) is becoming more and more popular due to the huge rental demand from FDI enterprises investing in Vietnam. Most companies choose the BTS model because they cannot find a ready-built factory (RBF) that suits their needs or they do not tend to invest in fixed assets in Vietnam but want to focus on machinery, people,…. to serve production and business, as well as to quickly enter/withdraw from the market. For some large enterprises, some of which are listed on the US stock exchange, it is not difficult for them to invest in land and factories themselves, but they still choose to rent custom-built factories due to the benefits of this type.

Characteristics of factories for rent built to order

The custom-built rental factory type has many advantages over the ready-built factory type

Select location

The biggest advantage of the BTS model is the ability to choose the investment location for free. BTS allows freedom of location. These factories are developed at locations selected by the Lessee, which means that if the location is not available in the Lessor’s portfolio, the Lessor will purchase a new plot of land. During the research process, the Lessee often has an orientation in which province, city or industrial park to rent in. However, there is not always a ready-built factory for rent at that location, or there is a factory but the area, legality, and current status are not suitable, requiring a lot of expense to renovate… Therefore, if there is a party that builds a factory according to the Lessee’s requirements at a competitive rental price is a great choice.

Optimal design

Some manufacturing industries with specific lines require specific factory designs and layouts. For example, some companies that produce glass, panels or long sheet materials need long workshops, companies with SMT lines need to arrange enough lines, or some companies with good employee policies require High standards of office areas, restrooms, public areas, canteens, etc. All of these requirements can be discussed to choose the most suitable factory design.

Save time and money

Normally, when renting a ready-built factory, the Lessee will usually spend 1-2 or possibly up to 4-5 months of rent while not yet in actual production to (bid) the renovation package or/and carry out other necessary legal procedures. Meanwhile, with a build to suit factory, while waiting for the Lessor to build, the Lessee can carry out the necessary procedures and has the right to request the Lessor to build and install utilities as needed from the beginning.

Investment efficiency

Some Lessors allow the Lessee the right to Lease-to-buy (to buy back the factory after a certain rental period). When the Lessee determines its long-term plan in Vietnam, the Lessee can offer to buy back the factory, then the buyback price may be better because the factory has been depreciated.

Build to suit factory – managed and consulted by VKI

VKI provides customers with best Build-to-suit factories suitable for location requirements, designed to fully meet operations and also expand customers’ business activities through premium quality with international standards, applying the latest construction methods and technologies.

Our factories and warehouses are located in prime locations in key provinces and cities across Vietnam. With the extensive expertise we provide to our customers, we have become a trusted partner for many FDI enterprises investing in Vietnam.

VKI – a unit specializing in the field of industrial consulting and connection, has experience in consulting and connecting many built-to-order factory rental projects.

• Diversity of locations, areas, and industries: Currently, VKI is a partner of hundreds of Industrial Parks across the country with diverse land areas and industries.
• Reputable Lessor and Construction Contractor: The Lessor and Construction Contractor have both had their capacity and legality assessed by VKI.
• Fast handover progress: Factory construction progress usually only takes 3-4 months. During that time, investors can simultaneously prepare investment documents and still focus on production
• Rent incentives: With our team’s effective calculations, rent is always competitive with the market, saving a lot of costs for investors.
• Quick quote: Just a few days after receiving the investor’s request, we can calculate the rental plan and factory rental price.

Projects calling for cooperation (to be continued)

We are committed to providing comprehensive and high-quality solutions to support customers in achieving success in the field of industrial real estate investment and development.

Contact VKI at hotline 0967413186 to receive an immediate quote.