CapitaLand’s first integrated development in Hanoi’s exclusive Tay Ho district, a 25-storey development worth about US$217 million (credit: CapitaLand)
Company acquires site for first Hanoi development and also sets up second $130-million commercial fund.
by Linh San
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CapitaLand Limited has acquired a prime site for its first integrated development in Vietnam’s capital Hanoi and has successfully set up its second commercial fund in the country, the CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), which has closed at $130 million.
With a fund lifespan of eight years, CapitaLand will hold a 50 per cent stake in CVCVF and MEA Commercial Holdings Pte. Ltd the remainder. The fund will focus on Grade A commercial properties in Vietnam.
Located in Hanoi’s exclusive Tay Ho district with unobstructed views of scenic West Lake, the upcoming 25-story integrated development worth about $217 million will comprise a 380-unit residence including SoHo apartments, around 230,000 square feet (sq ft) of office space. and over 208,000 sq ft of retail space.
“This mixed-use development allows us to strategically diversify and optimize our Vietnam portfolio with both good trading returns and a strong recurring income stream,” said Mr. Lim Ming Yan, President and Group CEO of CapitaLand Limited. “With this latest project, we expand our presence in the capital of Hanoi and reaffirm CapitaLand’s commitment as a long-term partner in Vietnam’s urbanization journey.”
“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 ($7.5 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.”
“Vietnam is a key growth market for CapitaLand and we are seeing strong demand for vibrant, quality live-work-play spaces with rapid urbanization and the evolving lifestyles of young and mobile Vietnamese,” said Mr. Chen Lian Pang, CEO of CapitaLand Vietnam.
2017 was a year of stellar growth for CapitaLand in Vietnam, with the highest home sales ever achieved. The company sold 1,409 residential units, surpassing the previous year’s sales by 63 per cent.
CapitaLand’s latest residential launch, d’Edge Thao Dien in Ho Chi Minh City, was sold out in under two months. “With its prime waterfront location, excellent connectivity and proximity to government offices and an expatriate enclave, we are confident that this upcoming integrated development in Hanoi will be well received, as attested by the success of d’Edge Thao Dien,” Mr. Pang said.
The integrated development will stand on an approximately 0.9 ha 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’s first integrated development in Hanoi will also be in close proximity to the city’s diplomatic district and new government offices headquarters, one of the top international schools, United Nations International School, as well as the expatriate enclave in the district.
Vietnam is the third largest-market for CapitaLand in Southeast Asia, after Singapore and Malaysia. This latest acquisition will expand its portfolio to 12 residential developments, one integrated development, and 21 serviced residences with around 4,700 units across six cities in the country.