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Property developer CapitaLand has agreed to acquire a prime commercial site within the central business district (CBD) of Ho Chi Minh City to develop its first international Grade A office tower in Vietnam.
The company revealed that it will own a 100 percent stake in the 0.6ha site with a gross floor area of 106,000 sq m, which it plans to develop into a 240-metre international Grade A office tower with retail units on the basement and ground levels.
The development will be directly linked to a planned metro station, which will connect the CBD to the districts of Binh Thanh, 2 and 9.
Construction work is set to start in Q1 this year, with the development expected to be completed in 2020, or around the same time the metro line is expected to commence operations.
Chen Lian Pang, CEO of CapitaLand Vietnam, is confident the development will attract top multinationals, locally incorporated foreign banks and financial institutions.
“Tenants can look forward to state-of-the-art office facilities as well as exciting retail offerings, including some of the city’s best restaurants and cafes, lifestyle and entertainment outlets,” he noted.
CapitaLand President and Group CEO, Lim Ming Yan, explained that the development serves to diversify the company’s portfolio and strengthen its foothold in Vietnam.
“It is also in line with our plan to establish a US$500 million investment fund to focus on commercial properties in Vietnam. CapitaLand has a 22-year track record in Vietnam which has delivered to-date, 22 serviced residences, nine residential developments and now, a prime commercial property. Given its strong growth outlook and positive market sentiments, we are excited to be a long-term player in Vietnam’s growth story and will continue to look out for opportunities to grow our footprint,” he said.
Vietnam is CapitaLand’s third biggest market in Southeast Asia, after Singapore and Malaysia. It also set up a US$200 million fund in 2010, which has been fully invested in the development of three housing projects in Hanoi and Ho Chi Minh City.
Image source: CapitaLand
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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