Vietnam’s resort town Da Lat to have $67 mln ESG realty complex

The One Destination has partnered with a Singapore investor and an institutional fund to build an ESG real estate complex in Vietnam’s famous resort town of Da Lat.

Under an agreement announced by The One Destination, the joint venture arrangement of Singapore's Terne Holdings – a multi-sector investment group – and BTS Bernina Private Equity Fund – an Asia-focused regulated mutual fund, will hold a 30% stake in The One Destination.

The One Destination claims to be a leader in developing ESG (environmental, social, governance) real estate in Vietnam.

The One Destination is the developer of the Haus Da Lat project, which spans 5 hectares and has a total investment of VND1.7 trillion ($67 million). It is located by Xuan Huong lake, a picturesque natural lake that is considered the heart of Da Lat in the Central Highlands province of Lam Dong.

The decision of the international partners to select Da Lat as their first investment destination in Vietnam highlights the city's unique appeal, according to the statement.

They emphasize that in a tropical country like Vietnam, Da Lat - a 130-year-old city with year-round cool weather surrounded by tranquil lakes, vast pine forests, waterfalls, and vibrant flower fields, is a natural masterpiece.

"We were captivated by Da Lat at first sight and are proud to be one of the pioneering foreign investors in Da Lat," said a representative of BTS.

In June, the Ministry of Transport issued a decision to upgrade Da Lat’s Lien Khuong airport to an international airport. The expansion will help the airport cater to 5 million passengers annually, with flights from various countries worldwide.

In the first half of 2024, Lam Dong welcomed 5 million tourists, an increase of over 12% year-on-year. The province is headed to receive 10 million visitors, including 550,000 international tourists.

With Vietnam's dynamic economy ranking among Asia's top, an average GDP growth of 6-7% annually, and a rapidly growing middle class expected to reach 40% of the population by 2030, the country's real estate market is poised for a significant boom in the ESG segment, said The One Destination.

Caroline Lee, chairwoman of Terne Holdings, said: “Together with The One Destination and BTS, we will create a heritage landmark for Da Lat. We are proud to be among the pioneering foreign investors working alongside Vietnam's real estate developers to build and preserve Da Lat in the face of the city's concrete overdevelopment.”

“The best is often saved for last, and Haus Da Lat will be Vietnam's first ESG-standard landmark project, a heritage for Da Lat," said the The One Destination representative. Five leading international brands are also expected to join forces to create a new icon for Da Lat.

BTS Bernina Private Equity Fund is an open-ended investment company whose size exceeds $368 million, with 60% invested in Asia.

Terne Holdings is a multi-sector investment enterprise focusing on investments in creating ecological spaces that preserve the beauty of nature, prioritize health, and build strong communities.