The project is part of The Manor Central Park, a mixed-use development project being undertaken by Bitexco, the realty group widely known for its tallest building in Ho Chi Minh City – Bitexco Financial Tower.
Mitsubishi will hold a 45 per cent stake in the joint venture while Bitexco will hold the remaining 55 per cent, with the total investment cost estimated to be 30 billion yen (almost $285 million) for the first phase, the Japanese firm said, in a statement on Wednesday.
This project marks the first partnership with a foreign group in the real estate business of Bitexco.
The Manor Central Park covers an area of nearly 90 hectares, aimed to be facilitated with multiple urban functions including residential, commercial, office, school and sporting facilities. With the local authorities planning to merge this area with the adjacent 100-hectare memorial park, it will become the largest real estate development project in Hanoi, according to Mitsubishi’s announcement.
During the first phase of cooperation, the joint venture will develop 240 low-rise housing units and two high-rise condominiums, while the overall target is to construct 1,000 low-rise housing units and a total of 17 high-rise buildings.
“With steady economic growth and an expanding middle class, the Vietnamese market is expected to continue seeing an increase in the demand for housing. Amendments to the housing law in July 2015 that loosened restrictions on the purchase of real estate by foreigners are also likely to provide a boost to the housing market,” Mitsubishi said.
The Japanese partner is involved in a spate of real estate-related projects in many countries, most recently in the Landmark Project, a large mixed-use development in downtown Yangon, Myanmar.
The Yangon-based project entails redeveloping a site of around four hectares, where an office building, commercial facilities, a hotel and other real estate assets had been constructed. It will comprise of two new office buildings, one condominium, one building combining a hotel and serviced apartments, with commercial facilities being installed on the lower floors of each building, across a total floor area of over 200,000 sq m.
The Japanese company commits a total capital of $200 million to the Landmark Project, which will be developed in collaboration with Yoma Strategic Holdings and First Myanmar Investment, two affiliates of Myanmar conglomerate Serge Pun & Associates.
In Vietnam, Mitsubishi’s partner Bitexco is also a conglomerate of businesses spanning from real estate development and hydroelectric power generation to infrastructure development such as highways and utilities.
Bitexco’s real estate business started with the completion of an office building in Ho Chi Minh City in 2003, followed by the development of housing projects, commercial centers and hotels.