CapitaLand will establish a $500 million fund next year to invest in commercial property, primarily in Ho Chi Minh City and Hanoi.
“Given the mismatch between demand and supply, the Group sees strong demand in the Grade A office sector, particularly in Ho Chi Minh City,” a CapitaLand spokesperson told VET.

“We see opportunities in the commercial space in Vietnam so we are prepared to take a position,” President and Group Chief Executive Lim Ming Yan said on Straitstimes.com.

“I think the general trajectory for Vietnam is favorable and we foresee that this trend will continue for at least the next ten years.”CapitaLand to establish new $500 million fund, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

Seed projects for the new commercial fund have been identified and the group is in talks with capital partners. Mr. Lim said. “If you talk to many of these sovereign wealth funds and pension funds, they feel they are underexposed to Asian real estate at this point and are prepared to allot more capital,” he explained.

This will be CapitaLand’s second investment fund in Vietnam, after a $200 million fund launched in 2010 that has been fully invested in the development of three residential projects in Ho Chi Minh City and Hanoi. Capital partners were sovereign wealth fund GIC and Mitsubishi Estate Asia.

The developer has set a target of raising funds with total assets under management (AUM) of up to $10 billion from various private investment vehicles by 2020. CapitaLand Vietnam aims to grow its funds under management to $1 billion by next year to support the group’s AUM goals.

It also plans to acquire more sites in Vietnam for residential development – possibly yielding 2,000 to 2,500 units – as demand for housing is expected to increase amid rising urbanization and a growing middle class.

 

Source link

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Why Vietnam is Increasingly Focusing on Digital Accounting

Digital accounting refers to the creation, representation, and transfer of financial information into an electronic format. Instead of using a physical paper and pen, all accounting transactions are conducted electronically.

Vietnam, China and Thailand are Cambodia’s top three export destinations

Cambodia’s total export to the Regional Comprehensive Economic Partnership (RCEP) member countries amounted to $1.95 billion in the first quarter of 2022, up 11 percent from $1.75 billion  over the same period last year, a Ministry of Commerce’s data showed on Thursday.

TAT and Thai Vietjet Air sign letter of intent to promote tourism to Thailand

Thai Vietjet Air will operate the largest flight capacity between Vietnam and Thailand when it doubles the frequency of its flights between Ho Chi Minh City and Bangkok – planned to happen this month – to up to six flights per week.