Japan’s Mitsubishi Corporation and Nomura Real Estate have jointly invested in a housing development project developed by Vietnam’s biggest business conglomerate Vingroup.
The duo acquired 80 per cent in the second phase of the Grand Park project, a township development located in District 9, Ho Chi Minh City, according to an announcement.
Phase 2 is said to have a project cost of 100 billion yen ($918 million).
The township, slated to be completed in 2023, covers a 271-hectare area office space, residences, sports and commercial facilities, schools, hospitals and parks. Located about 20 km from downtown Ho Chi Minh City, the project has access to three highways as well as planned high-tech parks and industrial parks.
Phase 2 of the project, in which Mitsubishi and Nomura Real Estate are investing, covers 26 hectares and will have over 10,000 residential units, slated for completion in 2022.
“Looking forward, Mitsubishi Corporation and Nomura Real Estate will pursue opportunities to develop smart cities that take full advantage of the latest technologies and facilities,” the former said in a statement.
The project is part of Mitsubishi’s mid-term corporate strategy of strengthening its service and downstream businesses to “optimize its business portfolio”.
Mitsubishi’s earlier investments in Vietnam include housing projects in partnership with Phuc Khang Investment and Construction and SempCorp, Melco Elevator Vietnam, and a 19.7 per cent stake in Vietinbank.
Meanwhile, Nomura Real Estate in 2019 acquired Zen Plaza, a 14-storey office tower in Ho Chi Minh City after establishing its Vietnam-based subsidiary Nomura Real Estate Vietnam Co Ltd.
Diversified conglomerate Vingroup has interests in automobile, technology and education and is a leading real estate player in the country.
Vinhomes, the property development subsidiary of Vingroup, raised $1.35 billion in its initial public offering in what was the largest IPO in Vietnam by 2018. Singapore sovereign fund GIC was amongst its pre-IPO investors.
The company is currently listed as the third-largest business by market capitalisation at $13 billion. Vingroup is the biggest with nearly $17 billion in valuation.