CapitaLand to invest in industrial property

Raffles City Singapore project invested by CapitaLand Investment Limited

CapitaLand Investment, the investment management arm of CapitaLand Group plans to invest from $70 to $110 million in Vietnam to expand its industrial real estate portfolio to meet the needs of MNCs outside of China to increase production.

Nikkei Asia from Japan said that the real asset manager plans to invest the above investment capital into Vietnam in the next two years, according to Patricia Goh, CEO of Southeast Asia Investment, CapitaLand Investment..

CapitaLand Group and its affiliates, including CapitaLand Investment and CapitaLand Development, have great financial strength thanks to investment capital from Temasek Holdings, a national investment corporation of Singapore’s government.

In addition to CapitaLand, the list of Temasek Holdings subsidiaries also includes national Singapore Airlines, telecommunications group Singtel, DBS bank, SP Group, state-owned electricity and gas company, Mediacorp, the State-owned media channel and many leading companies in Singapore.

"When looking at companies that want to diversify their production chains outside of China, Vietnam is a logical choice," Goh told Nikkei Asia.

She added that Chinese textile and garment enterprises were targeting Vietnam. In addition, many electronics companies from Korea also intend to expand production in Vietnam.

This investment was not the first interest from CapitaLand Group into Vietnam’s industrial property market. In February 2022, CapitaLand Development (CLD), the development arm of CapitaLand Group, has signed an MoU with Bac Giang People’s Committee valued at $1 billion.

The MoU outlines CLD’s and the provincial government’s mutual interest to explore the development of CLD’s first industrial park, logistics park, and township development in Vietnam.

Even though the process of this MoU has not been realised so far, the investment in Bac Giang province will be CLD’s first industrial, logistics, and township development in Vietnam.

The more than 400 hectare project will support the creation of a dynamic supply chain network in Vietnam’s northern key economic region. It will also potentially create over 20,000 new jobs and improve the standard of living for Bac Giang’s residents and workforce.

Entering Vietnam in 1994, CLD’s portfolio comprises one retail mall, one SOHO development, two integrated developments, and about 16,000 quality homes across 17 residential developments in Hanoi, Ho Chi Minh City, and Binh Duong province.

CapitaLand Group’s investment plan was revealed amid a series of industrial park real estate developers in Vietnam promoting their business plans: Singapore Frasers Property Vietnam, Logos, and BW Industrial Development.

Vietnam is emerging as a potential destination as multinational corporations promote the "China +1" strategy and restructure production chains to minimise risks of supply chain disruption in response to the US-China trade situation.

Large-scale manufacturers such as Apple, Luxshare, Wistron, and Samsung are continuously expanding their investment and commit to expanding production further in Vietnam, despite the slowing down of global investment capital flows.

CapitaLand wins seven PropertyGuru Vietnam Awards CapitaLand Development (CLD) Vietnam won seven awards in both the developer and development categories at the prestigious 2023 PropertyGuru Vietnam Property Awards held on November 10.

CapitaLand Development aims to expand residential portfolio in Vietnam CapitaLand Development (CLD), the development arm of CapitaLand Group (CapitaLand), aims to grow its residential portfolio in Vietnam to 27,000 units by 2028.