CapitaLand debuts US$300m fund to boost commercial property expansion in Vietnam

The CapitaLand Vietnam Commercial Fund I (CVCFI), which has a life span of eight years, will invest in a Grade A commercial real estate in Vietnam.
The CapitaLand Vietnam Commercial Fund I (CVCFI), which has a life span of eight years, will invest in a Grade A commercial real estate in Vietnam.PHOTO: ST FILE

SINGAPORE - CapitaLand said on Tuesday (Aug 22) it has successfully set up its first private equity fund in Vietnam, which closed at US$300 million.

The CapitaLand Vietnam Commercial Fund I (CVCFI), which has a life span of eight years, will invest in a Grade A commercial real estate in Vietnam.

CapitaLand will take a 40-per cent stake in CVCFI while the remaining interest will be held by major institutional investors.

Mr Lim Ming Yan, CapitaLand president & group CEO, said: "Scaling up in the real estate sector requires strong financial capacity and flexibility. By proactively working with reputable capital partners to build scale, we can be nimble and react fast to seize growth opportunities.

"We see increasing investor interest in Southeast Asia, in particular Vietnam. They want to invest in the country through CapitaLand given our deep local platform and execution capabilities. CapitaLand is positive about the growth trajectory of Vietnam and foresee that this trend will continue for at least the next 10 years."

Mr Lim added that the CVCFI brings the company closer to its goal of raising funds with total assets under management of up to S$10 billion by 2020.

It comes on the back of CapitaLand's largest private equity partnership, the US$1.5 billion Raffles City China Investment Partners III, which invests in prime integrated developments in gateway cities in China.

Mr Chen Lian Pang, CEO of CapitaLand Vietnam, which has been engaged in residential developments and serviced residences in Vietnam, made its first foray into commercial real estate through its acquisition and development of an Grade A office tower in the Central Business District of Ho Chi Minh City, which will be completed in 2020.

CapitaLand also partnered the country's largest coworking space operator, Toong, which opened their first outlet in Ho Chi Minh City at CapitaLand's The Oxygen mall, within the residential development, The Vista.

Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia.