D1mension, CapitaLand's development in Ho Chi Minh City's District 1.
Singaporean real estate developer CapitaLand will launch a $500 million fund by next year to invest in commercial property in Vietnam, mainly in Ho Chi Minh City
, according to the Strait Times.
This will be CapitaLand’s second investment fund in Vietnam. Its first fund worth $200 million, backed by sovereign wealth fund GIC and Mitsubishi Estate Asia, was launched in Vietnam in 2010 and is fully invested in three residential projects in HCM City and Hanoi.
The general trajectory for Vietnam is favorable and this trend is expected to continue for at least the next 10 years, said President and Group Chief Executive Lim Ming Yan.
The firm sees “strong potential upside” in the office market, particularly in Ho Chi Minh City, given its mismatch between demand and supply of Grade A offices.
CapitaLand Vietnam aims to grow its fund under management to $1 billion by next year to support the group's asset-under-management goal.
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 poised to go up amid rising urbanization and a growing middle class.
CapitaLand has launched nine residential projects with more than 9,100 units in Ho Chi Minh City and Hanoi.