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President & Group CEO Lim Ming Yan noted that the fund will bring CapitaLand nearer to their objective of “raising funds with total assets under management of up to S$10 billion by 2020″. (Photo: CapitaLand)
CapitaLand announced today (22 August) that it has established a US$300 million (S$408.75 million) commercial fund with a tenure of eight years that will invest in Grade A commercial properties in Vietnam.
“CapitaLand Vietnam Commercial Fund I (CVCFI) brings us a step closer to our goal of raising funds with total assets under management of up to S$10 billion by 2020,” said the company’s President & Group CEO Lim Ming Yan.
It is touted as CapitaLand’s first commercial fund in the country with more investment opportunities to follow. The Singapore-based developer owns a 40 percent stake in CVCFI, while the remaining are held by large institutional investors.
“It comes on the back of our largest private equity partnership, the US$1.5 billion (S$2.04 billion) Raffles City China Investment Partners III, which invests in prime integrated developments in gateway cities in China,” noted Lim.
According to CapitaLand’s country head, Chen Lian Pang, they made their first foray into Vietnam’s commercial property market with the purchase of an international Grade A office tower in Ho Chi Minh City’s central business district that has direct access to an upcoming metro station.
“With the completion of this development in 2020, we will continue to diversify our portfolio and strengthen our foothold in the country,” he said.
In fact, the developer has teamed up with Vietnam’s biggest coworking space operator, Toong, which opened their first outlet in CapitaLand’s The Oxygen mall in the country’s capital.
At present, CapitaLand has one Grade A office development, nine residential projects, 22 serviced residences with more than 4,700 units across six cities in Vietnam, which represents its third largest market in Southeast Asia after Singapore and Malaysia.
This article was edited by Denise Djong.
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