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CapitaLand plans US$300m Vietnam fund

It has also formed a partnership with a Vietnamese investment company

CAPITALAND, South-east Asia’s largest property developer, plans to set up a US$300 million property fund in Vietnam.

The company also said yesterday it has forged a partnership with Vietnamese firm Nam Thang Long Investment Joint-Stock Company to seek investment opportunities in Vietnam.

With the new business initiatives, the developer aims to strengthen its presence in Vietnam, which it has identified as one of its key Asian markets.

The news sent CapitaLand’s shares up as much as 27 cents – or 4.2 per cent – yesterday. The stock closed the day 16 cents up at $6.56.

In its filing to the Singapore Exchange, CapitaLand said it will leverage on its real estate and fund management capabilities to set up its first property fund to invest in Vietnam. It intends to take a 30 per cent stake in the fund, which has a target size of US$300 million.

To secure other investors in the fund, CapitaLand has signed a memorandum of understanding with Citi Private Bank, one of the world’s largest wealth managers which serves high net worth individuals with more than US$10 million in net worth each.

The partnership with Nam Thang Long Investment Joint-Stock Company, on the other hand, will allow CapitaLand to seek further business opportunities in Vietnam with a real estate focus. The two companies hope to develop residential properties and commercial and residential mixed developments together.

CapitaLand already has a significant presence in Vietnam, mainly in the residential and service residences sectors in Hanoi and Ho Chi Minh City.

‘Our aim is to deepen CapitaLand’s presence in Vietnam to become a significant long term real estate player here,’ said CapitaLand chief executive Liew Mun Leong.

‘We’re confident of doubling our residential pipeline in Vietnam from the present 2,800 homes to about 6,000 in the next three years and we’re also looking for opportunities in the office, retail, and integrated leisure, entertainment and conventions sectors.’

Source: Business Times 28 Feb 08

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