Singapore-based real estate developer and fund manager Ascendas has entered into a joint venture agreement with an investment venture called Saigon Bund Capital Partners to develop a business park in Ho Chi Minh City in Vietnam. The cost of the development is expected to be about $130 million.
As per the agreement finalized Thursday, Ascendas will take a 60 percent stake in the partnership while Saigon Bund Capital Partners, itself a joint venture between Hong Kong private equity real estate firm Gaw Capital Partners and another firm called NP Capital Partners, will take the rest.
“As a rapidly developing market for higher-value industries, Vietnam is increasingly a location of choice for companies in the industrial, manufacturing and knowledge industries – many of whom are our clients,” Han Ann Foong, country head of the firm’s Vietnam operations said.
The JV will develop 1,291,669 square feet of land at Saigon hi-tech park, a business hub located 15 kilometers away from the city. Called OneHub Saigon, the complex will house offices, lifestyle amenities and educational facilities. The project will be competed in phases over a time period of seven years. Phase 1 will comprise business space for manufacturing, information technology and media industries.
The project will develop on similar lines as the OneHub Gurgaon in India and the OneHub GKC in China.
“This partnership will tap onto the extensive development experience and vast network of Saigon Bund Capital Partners in Vietnam and leverage on Ascendas’ experience in integrated business park developments in Asia to contribute to Vietnam’s growth as it moves up the value chain in industry development,” William Tay, chief executive officer for Ascendas south-east Asia said in a statement.
This is Ascendas’ third real estate investment in the country, according to Foong. The other two include a 500-hectare tech park with Protrade in the Binh Duoung province located in the country’s southeast.
The firm has been forging partnerships with several Asian developers and institutions to expand its footprint in the region. In March, it signed an agreement with Ping An Trust, a subsidiary of China’s largest insurance company to seek co-investment opportunities and form RMB-denominated funds to largely invest in office and mixed-use properties in China and elsewhere in Asia.
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