CapitaLand buys prime site for its first integrated project in Hanoi

MR LIM MING YAN (above), CapitaLand president and chief executive.
MR LIM MING YAN (above), CapitaLand president and chief executive.

Developer CapitaLand has acquired a prime site for its first integrated development in the Vietnamese capital Hanoi.

It has also set up its second commercial fund in the country - CapitaLand Vietnam Commercial Value-Added Fund.

The land in Tay Ho district will be developed into a 25-storey mixed-use development worth around US$217 million (S$288 million).

It will comprise a 380-unit residence, including Small Office Home Office (SoHo) apartments, around 230,000 sq ft of office space and 208,000 sq ft for retail, CapitaLand said.

CapitaLand secured the land when a unit acquired 16.97 million shares or 99.49 per cent of the charter capital of Hien Duc Tay Ho Joint Stock Company for about 685 billion Vietnamese dong (S$39.9 million).

Hien Duc owns about 0.9ha in the Tay Ho district.

OPTIMISING PORTFOLIO

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.

MR LIM MING YAN, CapitaLand president and chief executive.

CapitaLand president and chief executive Lim Ming Yan said yesterday: "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.

"With this latest project, we expand our presence in Hanoi and reaffirm CapitaLand's commitment as a long-term partner in Vietnam's urbanisation journey."

The new fund CapitaLand announced yesterday will have a lifespan of eight years and will focus on grade-A commercial properties in Vietnam.

It has closed at US$130 million, with CapitaLand and MEA Commercial Holdings each holding a 50 per cent stake.

Mr Lim said the firm will develop the Hanoi project through this new fund.

"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 $10 billion before 2020."

CapitaLand shares closed two cents down at $3.61 yesterday.

A version of this article appeared in the print edition of The Straits Times on March 02, 2018, with the headline 'CapitaLand buys prime site for its first integrated project in Hanoi'. Print Edition | Subscribe