Singaporean property developer CapitaLand has further expanded its foothold in Vietnam, its third largest market in Southeast Asia, with the establishment of a second commercial fund and the acquisition of a prime site in Hanoi.
In a statement, CapitaLand said it successfully set up CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), its second commercial fund in the country, which was closed at $130 million. The first commercial fund, CapitaLand Vietnam Commercial Fund, was closed at $300 million last year.
The company will hold a 50 per cent stake in CVCVF with the balance interest held by MEA Commercial Holdings Pte Ltd. The fund, which has a lifespan of eight years, will focus on Grade A commercial properties in the country.
CapitaLand has also acquired a prime site in Hanoi for a $217-million, 25-storey integrated development. The project will comprise a 380-unit residence, including SoHo apartments, around 230,000 square feet of office spaces, and over 208,000 square feet of retail spaces.
The integrated development will stand on an approximately 0.9-hectare site in Tay Ho District, well connected to both the new and old business districts and less than a 20-minute drive away from Hanoi’s Noi Bai International Airport.
CapitaLand President & Group CEO Lim Ming Yan said the investment will be undertaken through the company’s second commercial fund in Vietnam.
“With this latest project, we expand our presence in the capital city of Hanoi and reaffirm CapitaLand’s commitment as a long-term partner in Vietnam’s urbanisation journey,” Lim said.
Together with the $300-million CapitaLand Vietnam Commercial Fund, which was set up last year, CapitaLand is now closer to its five-year target of leveraging private equity funds to grow its assets under management by S$10 billion ($7.5 billion) before 2020.
Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia. As at end December 2017, it has S$948 million ($715 million) worth of gross assets under management in Vietnam.
The latest acquisition will expand CapitaLand’s portfolio to 12 residential developments, one integrated development and 21 serviced residences with around 4,700 units, across six cities in Vietnam.