SINGAPORE (Jan 17): CapitaLand is acquiring a prime commercial site in the CBD of Ho Chi Minh City to develop its first international Grade A office tower in Vietnam.

CapitaLand will hold a 100% stake in the 0.6ha site with a gross floor area of 106,000 sqm.

Located in the heart of Ho Chi Minh City’s District 1, the site will be developed into a 240-metre, international Grade A office tower with retail units at the ground and basement levels.

Located near the Saigon River in the heart of District 1, the design of the development is inspired by the iron tree, a symbol of strength, stability and wealth in Asia.

The upper floors of the tower will feature open terraces with greenery where tenants can meet, network or relax while enjoying unobstructed views of the Saigon River and the city.

It is within walking distance to the city’s shopping and entertainment area, and the Ascott Waterfront Saigon — a 222-unit luxury serviced residence due to open in July 2017, which is managed by CapitaLand’s wholly-owned serviced residence arm, The Ascott Limited.

The development will be directly connected to a planned metro station, which will link the CBD to the districts of Binh Thanh, 2 and 9.

Construction is expected to commence in 1Q 2017 and will complete in 2020, which is about the same time the metro line is expected to begin operation.

Lim Ming Yan, President & Group CEO of CapitaLand, said, “The acquisition and development of our first Grade A office tower in a prime location in Ho Chi Minh City, serves to diversify CapitaLand’s portfolio and strengthen our 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.”

The deal was signed through CapitaLand’s wholly-owned subsidiary, CapitaLand (Vietnam) Holdings.

Vietnam is now the developer’s third largest market in Southeast Asia, after Singapore and Malaysia.

Shares of CapitaLand are down 2 Singaporean cents at S$3.15 (RM9.89). —

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