Mapletree buys Kumho Asiana Plaza in Ho Chi Minh City

MAPLETREE Investments on Thursday said it has acquired Kumho Asiana Plaza Saigon in District 1 of Vietnam's Ho Chi Minh City from Kumho Industrial Company and Asiana Airlines.

While the investment firm did not cite the consideration, Korean media quoted the figure at US$215 million. BT understands that this is the net asset value of the transaction. After including liabilities, the consideration ought to be higher.

This is Mapletree's largest acquisition involving a completed, income-producing property in Vietnam, it said. It is in line with the group's strategy to invest in strong-yielding assets to further grow its business and earnings.

Kumho Asiana Plaza is a prime mixed-use asset with close to 146,000 square metres (sqm) in gross floor area. It comprises Grade A offices, highly-rated serviced apartments and a hotel managed by InterContinental Hotels Group, as well as a variety of food & beverage offerings.

Occupancies for the office and serviced apartment components, as well as the F&B podium, have been consistently above 90 per cent, Mapletree said.

The asset is located along Le Duan Boulevard and Hai Ba Trung Street in the heart of Ho Chi Minh City's central business district. It is also close to the city's major landmarks and tourist attractions such as the Notre-Dame Cathedral Basilica of Saigon.

Mapletree began investing in Vietnam in 2005, and today owns and manages a portfolio comprising office, retail, industrial, logistics, and serviced apartment assets. Including Kumho Asiana Plaza, the group now has over S$1 billion in assets under management in the country.

Hiew Yoon Khong, Mapletree Group CEO, said: "We will continue to seek investment opportunities in completed, quality assets that are immediately yield-accretive in Vietnam's major cities such as Ho Chi Minh City and Hanoi. We are also keen to invest in greenfield opportunities to develop office, retail, residential, serviced apartment and mixed-use developments, either on our own or with local partners."