Indonesia, Vietnam are JLL's industrial picks

EXTOLLING the benefits of investing in industrial properties in South-east Asia, property consultancy JLL cited Indonesia and Vietnam as its top picks given their more compelling yields compared to more mature markets in the region.

The yield on cost of developing industrial facilities is estimated to be 10-12 per cent in these countries. As most developers tend to borrow 50-70 per cent of development cost, effective cash-on-cash yield can be attractive at 11-15 per cent, JLL head of capital Regina Lim said in a report.

"In more mature markets, such as Singapore and Malaysia, yield on cost of developing industrial facilities is lower, at around 7-10 per cent," she noted.