Singapore-based CapitaLand has set up a new commercial fund in Vietnam with MEA Commercial Holdings, raising US$130m (鈧�106.6m).
CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), is CapitaLand鈥檚 second commercial fund in Vietnam, now its third-largest market in Southeast Asia, after Singapore and Malaysia.
CapitaLand and Singapore investment company MEA will each hold a 50% stake in the fund which is expected to run for eight years.
CapitaLand said the fund鈥檚 first integrated development will be built on a newly-acquired prime site in Vietnam鈥檚 capital city, Hanoi. Completed value of the project will be about US$217m.
The fund will focus on Grade A commercial properties in Vietnam.
Lim Ming Yan, CapitaLand鈥檚 president and group CEO, said: 鈥淭his mixed-use development allows us to strategically diversify and optimise our Vietnam portfolio with both good trading returns and a strong recurring income stream.
鈥淲ith this latest project, we expand our presence in the capital city of Hanoi and reaffirm CapitaLand鈥檚 commitment as a long-term partner in Vietnam鈥檚 urbanisation journey.鈥�
Lim said CapitaLand was now closer to its five-year target of leveraging private equity funds to grow assets under management (AUM) by SGD$10bn (鈧�6.1bn) before 2020.
The group鈥檚 first Vietnam fund, the US$300m CapitaLand Vietnam Commercial Fund, was set up last year.
Chen Lian Pang, CEO of CapitaLand Vietnam, said: 鈥淐apitaLand sold 1,409 residential units, mostly in Vietnam鈥檚 southern city of Ho Chi Minh City, to hit record sales of SGD459.6m in 2017.鈥�
The figure surpassed sales of S$282.1m in 2016 by 63%.
At December 31, 2017, CapitaLand had SGD948m worth of gross assets under management in Vietnam.
