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.”
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.
Vietnam: Manufacturing to remain the key driver of growth
We expect robust exports, led by strong global demand for electronics, to continue to underpin solid economic growth over the remainder of this year with GDP forecast to rise close to 8%.
GDP growth was unchanged at 4.5% y/y in Q1. Manufacturing activity surged, while the recovery in service sector activity and construction continued albeit at a more subdued pace as some localised social distancing measures were reinstated.
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The survey was conducted on 174 Vietnam cooperatives in 24 provinces and cities and 34 cooperative alliances of provinces and cities to assess the impact of the COVID-19 pandemic on cooperatives in Vietnam
Hanoi (VNS/VNA) – Most cooperatives have been harmed by the COVID-19 pandemic while only a small proportion of them have benefited from support policies, heard a forum held by the Vietnam Cooperative Alliance (VCA) and the United Nations Development Programme (UNDP) on March 24.
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