Mapletree eyeing greater expansion across Vietnam

Ho Chi Minh City

ONE of Mapletree Investments' signature mixed-use developments in Vietnam, the 4.4-hectare Saigon South Place Complex in an upscale area of Ho Chi Minh City, is fast taking shape.

Two years after the first phase saw the opening of the SC VivoCity mall, the Singapore-based real estate developer marks another significant milestone this week with the official opening of a 17-storey office building in the precinct.

The Mapletree Business Centre, as it is called, is the company's first office development in Vietnam.

Designed to international Grade A specifications, it is the first of three planned premium office towers at the US$360 million Saigon South Place Complex.

The office space at Mapletree Business Centre has features such as large column-free floor plates, raised floors, a three-metre high ceiling and an all-glass façade for lighting optimisation.

In an email interview with The Business Times, Mapletree's regional chief executive officer (South-east Asia) Wendy Koh said the new office tower has attracted local and international firms from the IT, fast-moving consumer goods and banking industries, among others.

Some of the tenants already on board are Standard Chartered Bank, Singapore-based athletic wear brand Bodynits, Vietnamese food manufacturer Uniben, Far Eastern Polytex, and technology solutions provider SCC UK.

Ms Koh, who said that more contracts are in active negotiation, described the tenancy pick-up rate so far as an "endorsement" of Mapletree's credibility as an office developer and space provider in the region.

She added that RichLane Residences - the residential component of Saigon South Place Complex - will soon be launched, while serviced apartment Oakwood Residence Saigon is expected to begin operations in early-2018. The complex's other two office towers, which are still being planned, will be 28-storeys high.

Saigon South Place Complex is part of Mapletree's expanding portfolio of projects in Vietnam, ever since the company first entered the market over 12 years ago.

It now owns and manages more than S$1.2 billion worth of mixed-use, office, retail, industrial, logistics, residential and serviced apartment assets in the capital Hanoi, Ho Chi Minh City, Binh Duong and Bac Ninh.

In June last year, Mapletree acquired Kumho Asiana Plaza, one of the largest-mixed use properties in Ho Chi Minh City. Another residential project in District 2 is also being developed and is expected to be launched later this year.

Said Ms Koh: "Vietnam presents an exciting investment opportunity for Mapletree because of its strong economic fundamentals, such as a young and industrious population, a burgeoning middle income group, as well as its stable political environment. This has driven an upward increase in foreign direct investments."

She added that Mapletree is in "active negotiations" for suitable sites to invest in greenfield projects to develop office, retail, residential, serviced apartment and mixed-use developments.

The company is also constantly looking for investment opportunities in "completed, quality" assets in Vietnam's major cities, said Ms Koh.

"Currently, the greater share of our investments are in Ho Chi Minh City. However, we are also open to exploring opportunities in other parts of Vietnam. As a group, Mapletree is looking at expanding and increasing our exposure in other parts of Vietnam including Hanoi, and central Vietnam for logistics properties," she added.

Mapletree's South-east Asia business unit currently holds the group's investments in the retail, office, serviced apartments, industrial and mixed-use developments in Malaysia and Vietnam.

Ms Koh said that some of the other Asean markets the company has its eye on are the Philippines and Indonesia.

READ MORE: Mapletree closes US$1.3 billion private trust for student dorms