CapitaLand (Vietnam) Holdings, under Singapore’s CapitaLand, and Malaysia-headquartered realty firm United Overseas Australia have set up a joint venture to develop a $247.1 million real estate project in Vietnam.
Per a Monday announcement of United Overseas Australia, the joint venture establishment is the next step of a memorandum of understanding signed between the two sides in December 2021.
United Overseas Australia will hold a 30% stake in the joint venture while CapitaLand Vietnam Holdings will hold the remaining 70%. For the $247.1-million project, each side will make their capital commitments per their respective propotions, according to the release.
The project is a mixed-use development in Vietnam, initially consisting of four high-rise buildings providing residential, commercial and retail spaces; one medium-rise building for residential and retail purposes; and two low-rise buildings for residential spaces, United Overseas Australia said without further details.
CapitaLand has been investing in Vietnam since 1994, with the Somerset West Lake residential-commercial building in Hanoi as its first project.
In November, CapitaLand Development, the development arm of CapitaLand Group, said it would begin construction of a high-end residential project in Hanoi in the first quarter of 2024. The firm said the project, named Lumi Hanoi, would cover 5.6 hectares of a prime site in the west of Hanoi, with a total gross development value of SGD1 billion ($738.6 million).
In December, Sycamore, an affiliate of CapitaLand, acquired the Tan Thanh Binh Duong housing-urban area complex in the southern province of Binh Duong. With an initial investment of VND13,645 billion ($562.1 million), the 18.9-hectare project is set to accommodate 12,500 people in 3,300 houses and 462 villas.