Artist’s impression of CapitaLand’s first integrated development in Hanoi.
CapitaLand has acquired a 0.9ha prime site for its first integrated development in Hanoi, and has successfully set up its second commercial fund within the country – CapitaLand Vietnam Commercial Value-Added Fund (CVCVF).
The 25-storey integrated development will be located in Tay Ho district, featuring a 380-unit residence including SoHo apartments, about 230,000 sq ft of office space and more than 208,000 sq ft of retail space.
Well connected to both the old and new business districts, the US$217 million (S$287 million) development will be situated near Hanoi’s Noi Bai International Airport, the city’s diplomatic district, new government office headquarters, the expatriate enclave of Xuan Dieu and international schools.
“This mixed-use development allows us to strategically diversify and optimise our Vietnam portfolio with both good trading returns and a strong recurring income stream,” said CapitaLand president and group CEO Lim Ming Yan.
With focus on Vietnam’s Grade A commercial properties, CVCVF – which has a fund life span of eight years – closed at US$130 million (S$172 million).
CapitaLand will own a 50 percent stake in CVCVF, with the rest being held by MEA Commercial Holdings.
“Together with our US$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 before 2020,” noted Lim.
Vietnam is CapitaLand’s third biggest market in Southeast Asia, after Singapore and Malaysia. In fact, the company’s gross assets under management in the country stood at S$948 million as at end-December 2017.
“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,” the company revealed in a statement.