CapitaLand to develop office tower in Ho Chi Minh City

CAPITALAND announced, prior to the start of trading on Tuesday, that it will be developing its first international Grade A office tower in in the heart of Ho Chi Minh City, Vietnam.

CapitaLand will have 100 per cent stake in the 0.6 ha site with a gross floor area of 106,000 sq m, which will be developed into a 240 m international Grade A office tower with retail units on the ground and basement levels.

The development, located near the Saigon River in the heart of District 1, will be directly connected to a planned metro station, linking the central business district to the districts of Binh Thanh, 2 and 9.

Construction is expected to start in the first quarter of this year and slated to complete in 2020, about the same time that the metro line is expected to begin operation.

President & group CEO of CapitaLand Lim Ming Yan said that the acquisition and development serves to diversify CapitaLand's portfolio and strengthen its foothold in Vietnam.

"It is also in line with our plan to establish a US$500 million investment fund to focus on commercial properties in Vietnam. CapitaLand has a 22-year track record in Vietnam which has delivered to-date 22 serviced residences, nine residential developments and now, a prime commercial property. Given its strong growth outlook and positive market sentiments, we are excited to be a long-term player in Vietnam's growth story and will continue to look out for opportunities to grow our footprint," he said.

Vietnam is CapitaLand's third largest market in South-east Asia, after Singapore and Malaysia. Last November, it announced plans to set up a US$500 million fund to invest in commercial properties in Vietnam, its second one after a US$200 million fund launched in 2010, which was fully invested in the development of three residential projects in Ho Chi Minh City and Hanoi.