It will comprise of SoHo apartments, office and retail spaces.
CapitaLand Limited has bought a prime site in Hanoi for its integrated development and set up its second commercial fund in the country, the CapitaLand Vietnam Commercial Value-Added Fund (CVCVF).
CapitaLand will build a 25-storey integrated development worth about $285m on its site in Tay Ho district. It will comprise of 380-unit residence including Small Office, Home Office (SoHo) apartments, around 230,000 square feet of office space, and over 208,000 square feet of retail space.
“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 Lim Ming Yan, president & group CEO of CapitaLand, in a press release.
The CVCVF, which has closed at $171m, will focus on Grade A commercial properties in Vietnam. It has a fund life span of eight years.
Meanwhile, CapitaLand will hold a 50% stake in CVCVF with the balance interest held by MEA Commercial Holdings Pte. Ltd.
“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,” Lim added.
CapitaLand’s home sales in Vietnam surged by 61% year-on-year to $459.6m in 2017.
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