CapitaLand mulls over boosting $2.1b multi-asset presence in Vietnam

A Raffles City could be considered.

CapitaLand Limited has announced plans to expand its multi-sector real estate presence in Vietnam. It is looking to significantly increase its S$2.1b multi-asset class presence in Vietnam, including a possible Raffles City.

CapitaLand plans to acquire more sites in Vietnam for residential development – possibly yielding 2,000 to 2,500 units this year – and will continue to keep a lookout for investment opportunities in offices, serviced residences, and integrated developments.

With more than 9,000 homes and about 4,600 serviced residence units across the country, Vietnam has become one of CapitaLand’s key markets, after China and Singapore.

CapitaLand has been present in Vietnam – its third largest Southeast Asian market after Singapore and Malaysia – for more than 22 years.

It currently has S$2.1b worth of gross assets under management in Vietnam, including 22 serviced residences, nine residential developments, and a prime commercial property.

As at end December 2016, CapitaLand’s gross assets under management in Vietnam was S$2.1b, making it the Group’s third largest market in Southeast Asia, after Singapore and Malaysia.

With an annual economic growth rate averaging 6% over the last three years, Vietnam is one of the fastest growing economies in Asia underpinned by sound fundamentals such as a young, educated population, growing middle income class, and rapid urbanisation.

Consistently, high foreign direct investment inflows have boosted office demand, especially in its economic hub, Ho Chi Minh City.