CapitaLand’s development arm has entered into two separate joint ventures in Vietnam with Japan’s Mitsubishi Estate, Singapore’s Far East Organisation and United Overseas Australia (UOA), to develop residential projects with gross value of S$2bn (€1.4bn).
CapitaLand Development (CLD) and Malaysian developer UOA have partnered in the Sycamore project in Binh Duong province, while Mitsubishi Estate and Far East Organisation will be CLD’s partners in Lumi Hanoi in the Vietnamese capital.
Ronald Tay, CEO of CLD in Vietnam, said: “To achieve CLD’s target of adding another 11,000 residential units in the next five years, we will step up our capital deployment in Vietnam and expand our development pipeline through strategic tie-ups with reputable and like-minded local and foreign partners.
“Sycamore and Lumi Hanoi are CLD’s largest residential projects in Vietnam to date with about 7,500 units in total and a combined gross development value of over S$2bn.
Jonathan Yap, CEO of CLD, said: “In addition to Vietnam’s residential sector, we see the potential for CLD to tap real estate opportunities in its burgeoning commercial, industrial and logistics sectors in tandem with the country’s ascent as a global manufacturing hub.”
He said CapitaLand entered Vietnam in 1994, starting with serviced residence and commercial projects before embarking on residential developments in 2007 with The Vista in Ho Chi Minh City. Today, CLD’s portfolio in Vietnam comprises one retail mall, one SOHO development, two integrated developments, and about 16,000 quality homes across 17 residential developments in Hanoi, Ho Chi Minh City and Binh Duong province.
“As the group marks 30 years of successful local operations in 2024, we are pleased to reinforce our commitment to Vietnam with a target for CLD’s residential business to reach 27,000 units by 2028.”
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