Singapore-based private equity real estate firm, Pacific Star, is to increase its exposure to Vietnamese real estate after forming an asset management agreement with Ho Chi Minh developer Novaland.
PERE can reveal that the partnership, initially a three-year deal, sees Pacific Star play an advisory role to Novaland as it develops its $500 million Sunrise City Shopping Mall. However the firm, led by Jeff Tay, is expected to make capital investments to the project and to others by the developer at a later point.
Eric Canale, senior vice president at Pacific Star told PERE: “We view this Strategic Asset Management contract as a stepping stone to a broader and more comprehensive relationship with Novaland, including potential co-investment in Sunrise City and other projects.”
He said: “While we are clearly focused on the success and value creation of Sunrise City retail asset, we will begin looking at new opportunities together as the relationship evolves and given our commitment to the Vietnam market.”
The Sunrise City Shopping Mall is expected to be completed by late 2012 and will cost $500 million to develop. The 700,000 square foot shopping mall forms part of a wider mixed-use development called Sunrise City which, when completed in 2013, is expected to comprise the mall and 14 luxury residential and office towers. The whole site is spread over 12.25 acres in the Him Lam Tan Hung area, about 10 miles from Ho Chi Minh City.
Pacific Star’s initial responsibility will be for “overall asset concept and performance”. This entails undertaking feasibility studies, advice on design, tenant mix, direct leasing, appointing agents and marketing.
The firm has taken comparable roles in projects in other major cities across Asia including Singapore, Malaysia and Seoul.