Vietnam-based real estate investment fund Indochina Capital and Japanese contractor and real estate developer Kajima Corporation have sealed a $1 billion joint venture partnership on Friday to invest in the Vietnamese real estate arena.
Indochina Capital and Kajima Corporation are equal partners in the new venture. The $1 billion investment capital will be contributed over a period of 10 years.
Named Indochina Kajima Development (ICC-Kajima), the joint venture will initially focus on urban in-fill accommodation projects, in the residential and hospitality segments, in Hanoi, Ho Chi Minh City and Danang. It will be primarily focused on providing permanent and temporary accommodations in the form of hospitality-serviced apartments-hotels and residences for sale.
The real estate market in Vietnam is maturing and developing rapidly presenting many opportunities, the Vietnam fund commented in a statement.“Vietnam has always been a market of interest to Kajima Corporation. Identifying the right partner has been the critical consideration and we are pleased to partner with Indochina Capital in the formation of ICC-Kajima,” said Keisuke Koshijima, who heads the overseas division at the Japanese $7.5 billion company by market capitalisation.
Founded in 1840, Kajima Corporation currently runs subsidiaries across North America, Europe, Asia and Australia and has several landmark projects in the region- including the Four Seasons Resort Hualalai, Hawaii, and Senayan Square in Indonesia, one of Asia’s largest multi-purpose developments.
Meanwhile, Indochina Capital has been investing in Vietnam-based luxurious properties, such as The Nam Hai, Six Senses Con Dao, Hyatt Regency Danang, Montgomerie Links Vietnam and Indochina Plaza Hanoi.
“We have a clear strategy which addresses the current and future demands of the market with a focus on delivering accommodation themed projects while maintaining our unwavering commitment to architectural excellence, environmental sustainability and social responsibility,” said Peter Ryder, Indochina Capital CEO.
In addition to the launch of ICC-Kajima, Indochina Capital has also created a joint venture with Vanguard Hotels, called Indochina Vanguard, to develop no frills affordable luxury hotels in Vietnam.
These two new platforms are expected to help Indochina Capital find new growth after the firm’s real esate fund – Indochina Land Holdings 2 – reportedly exited parts of its assets on discounted prices.
DEALSTREETASIA had earlier cited sources saying that the assets, including the Indochina Plaza Hanoi, were divested to Hong Kong-based real estate investment firm Gaw Capital Partners for some $110 million (the buyer then revealed the figure at $106 million), representing over 58 per cent discount.
However, in a later announcement, the Vietnamese fund claimed it as a “successful exit”.