CapitaLand Development (CLD) has divested a prime office building in the Vietnamese capital of Hanoi for S$751m (€491m) to an undisclosed buyer.

The asset, Capital Place, is held under the CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), a vehicle jointly owned by CapitaLand Development and investment firm MEA Commercial Holdings.

Ronald Tay, CEO of CLD Vietnam, said divestment was part of CVCVF’s exit strategy and in line with CLD’s ongoing capital recycling efforts to unlock the strong underlying value of the group’s assets.

“CLD will redeploy proceeds from this divestment into higher-yielding assets and as seed capital for future funds to be developed together with CapitaLand Investment in Vietnam,” said Tay.

The company said that upon completion of the Capital Place transaction, CVCVF would be fully divested and wound up, having delivered an internal rate of return, net of fees, of 34% to investors.

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