CapitaLand has successfully set up its first private equity fund in Vietnam, which closed at US$300 million (S$408.5 million).
The CapitaLand Vietnam Commercial Fund I (CVCFI), which has a lifespan of eight years, will invest in Grade A commercial real estate in Vietnam.
CapitaLand will take a 40 per cent stake in the CVCFI, while the remaining interest will be held by major institutional investors.
CapitaLand president and group chief executive officer Lim Ming Yan said yesterday: "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 South-east 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 China's gateway cities.
CapitaLand Vietnam CEO Chen Lian Pang said that the unit made its first foray into commercial real estate through the acquisition of a site located in the Central Business District of Ho Chi Minh City in January. The plot will be developed into a Grade A office tower, with completion targeted for 2020.
CapitaLand also partnered the country's largest co-working space operator, Toong, which opened its first outlet in Ho Chi Minh City at CapitaLand's The Oxygen mall, within residential development The Vista.
Vietnam is the third-largest market for CapitaLand in South-east Asia, after Singapore and Malaysia.