CapitaLand to develop first integrated development in Hanoi
CapitaLand to develop first integrated development in Hanoi
Stepping up growth momentum in one of its key markets, Singapore’s CapitaLand Limited has acquired a prime site for its first integrated development in Hanoi and has successfully set up its second commercial fund in the country, the $130-million CapitaLand Vietnam Commercial Value-Added Fund (CVCVF).
With a fund life p of eight years, CapitaLand will hold a 50 per cent stake in CVCVF with the balance interest held by MEA Commercial Holdings Pte. Ltd.
CVCVF will focus on Grade A commercial properties in Vietnam. Located in Hanoi’s exclusive Tay Ho district with unblocked views of the scenic West Lake, the upcoming 25-storey integrated development worth about $217 million will comprise of a 380-unit residence including SoHo apartments, around 230,000 square feet of office space, and over 208,000 square feet of retail space.
According to Lim Ming Yan, president and group CEO of CapitaLand Limited, this mixed-use development allows the company to strategically diversify and optimise its portfolio in Vietnam with both good trading returns and a strong recurring income stream.
“With this latest project, we expand our presence in the capital and reaffirm CapitaLand’s commitment as a long-term partner in Vietnam’s urbanisation journey,”Yan said.
“Together with our $300-million CapitaLand Vietnam Commercial Fund, which was set up last year, we are now closer to our five-year target of leveraging private equity funds to grow our assets under management by S$10 billion ($7.54 billion) before 2020. We are pleased to be able to work with reputable capital partners who want to invest through CapitaLand, given our deep local insights and execution know-how. This allows us to scale up fast and be nimble in seizing opportunities in fast-growing markets like Vietnam,” he added.
Chen Lian Pang, CEO of CapitaLand Vietnam, added that the country was a key growth market for CapitaLand and the company sees strong demand for vibrant, quality live-work-play spaces with rapid urbanisation and the evolving lifestyles of young and mobile Vietnamese people.
“Harnessing our vast experience across different real estate types, this upcoming integrated development will offer the best-in-class in homes, offices, and malls which will attract young Vietnamese urbanites, multinational companies, and local startups,” Pang said.
2017 was a year of stellar growth for CapitaLand in Vietnam with the highest home sales ever achieved (1,409 residential units) and sale value surpassing the previous year by 63 per cent.
The integrated development will stand on an approximately 0.9ha 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.
Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia.
As of the end of December 2017, it had 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.
