CapitaLand, for example, acquired an approximately 0.9 ha site in a prime location within Hanoi’s Tay Ho district in March. The project will comprise a 380-unit residence, around 21,400 sq m of office space, and over 19,300 sq m of retail space. This latest acquisition will expand CapitaLand’s portfolio to 12 residential developments, one integrated development, and 21 serviced residences in six cities in Vietnam.

Another Singaporean developer, Keppel Land, acquired the remaining 10 per cent stake in Jencity Limited, which has plans to build a township – Saigon Sports City – for approximately $11.4 million. Covering an area of 64 ha, the township will comprise about 4,300 premium homes and Vietnam’s first one-stop lifestyle hub with comprehensive facilities for sports, entertainment, shopping and dining.

Investors were also seeking to acquire development sites and properties in the country’s hospitality sector amid increasing consumer demand and surging international arrivals in Vietnam. In January, Japan’s Mikazuki Hotel Group announced plans to invest $100 million in a project in Da Nang. Covering an area of nearly 11.5 ha, the development aims to accommodate a five-star hotel, a waterpark, a theme park, and an F&B complex fronting the beach in the central city.

Also in the first quarter, Vietnam-based investment company Bamboo Capital acquired the Malibu resort project for approximately $14.8 million from Indochina Hoi An Beach Villas Co., Ltd.

There were very few investment transactions in Ho Chi Minh City’s office market due to a shortage of available properties for sale. One notable transaction was the January acquisition by Nomura Real Estate of a 24 per cent holding in Sun Wah Tower, a Grade A office building in the city center.

MAJOR TRANSACTIONS, Q1 2018

Property

Location

Price

Buyer

Usage

Sun Wah Tower (24% stake)

District 1, Ho Chi Minh City

N/A

Nomura Real Estate Asia

Office

Tay Ho District land plot (99.49% stake)

Tay Ho District, Hanoi

VND688 bn / $30.2 mn

CapitaLand

Mixed-use development

Saigon Sports City

(10% stake)

District 2,            Ho Chi Minh City

VND260 bn / $11.4 mn

Keppel Land

Township development

Malibu Resort

Dien Ban District, Quang Nam Province

VND337 bn / $14.8 mn

Bamboo Capital

Resort development

Source: Savills Research & Consultancy

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