HCM CITY — CapitaLand Viet Nam Investments Pte Ltd (CVI) has entered into a US$200 million joint venture with Japan's Mitsubishi Estate Asia Pte Ltd (MEA) and an affiliate of GIC Real Estate, the real estate investment arm of Government of Singapore Investment Corporation, to invest in prime real estate development projects in HCM City and Ha Noi.
CVI, which is a wholly-owned subsidiary of CapitaLand (Viet Nam) Holdings Pte Ltd, will take up a 50-per- cent stake in the joint venture, while the balance will be held in equal proportions by MEA and the affiliate of GIC Real Estate.
MEA is a wholly-owned subsidiary of Mitsubishi Estate Company Limited.
CVI will inject a pipeline of projects into the joint venture, while CapitaLand will undertake project management for these projects.
The first project will be an approximately 34,000sq.m site located in HCM City's Thanh My Loi Ward in District 2.
The first phase of this project will be a residential development that will offer 962 apartments supported by approximately 7,700sq.m of retail space.
CVI has also identified an approximately 14,000sq.m site in the Mo Lao New Urban Area in Ha Noi's Ha Dong District that the joint venture will undertake when the land is acquired. The project will comprise four residential towers with about 960 apartments.
"CapitaLand is confident of the growth prospects of the real estate sector in Vietä Nam as the country's real estate sector is supported by strong economic growth, stable government, rapid urbanisation and a young and growing population," said Chen Lian Pang, CEO of CapitaLand (Viet Nam) Holdings.
"As the country's urbanisation gathers pace and its middle class grows in tandem with the improving economy, demand for housing in major cities is set to rise. We will continue to explore new opportunities to further expand our presence in other real estate segments here and target to grow our business in Viet Nam from the current total assets base of US$336 million to around $1.68 billion over next three to five years."
Currently, CapitaLand Group has projects in HCM City, Ha Noi, Hai Phong and Da Nang, with over 4,500 apartments for sale in the development pipeline, plus another 1,300 serviced units. — VNS