Looking to gain a foothold in Vietnam’s property market, Singapore-based CapitaLand has set up a $300 million (€197 million) real estate fund to focus on investments in the country. Partnering with Citigroup’s Citi Private Bank, CapitaLand will take a 30 percent stake in the vehicle.
CapitaLand has also teamed with a local partner, Nam Thang Long Investment Joint-Stock Company, to further expand its presence in the country.
CapitaLand president and chief executive Liew Mun Leong said in a statement that it sees “vast opportunities in the Vietnam real estate market, driven by the country’s strong macroeconomic growth and rapid urbanization.”
Leong added that CapitaLand is aiming to double its residential projects in Vietnam over the next three years. In addition to residential developments, it is also looking for opportunities in the office, retail and “integrated leisure, entertainment and conventions sectors.”
The latest vehicle will focus largely on the development of residential properties and commercial/residential mixed-use developments.
The fund follows CapitaLand’s recent closing of two vehicles targeting the Asian property market. In November 2007, CapitaLand launched its first India-focused property fund, CapitaRetail India Development Fund, with $600 million in capital. The fund focuses on investments in retail developments in India.
In October 2007, CapitaLand closed its second vehicle targeting real estate investments in China, CapitaRetail China Development Fund II, on $600 million. The fund will invest in retail development projects in the country. Its first China-focused fund, CapitaRetail China Development Fund, which also has a size of $600 million, closed in 2006.