SINGAPORE (Aug 22): CapitaLand has successfully set up its first commercial fund in Vietnam – CapitaLand Vietnam Commercial Fund I (CVCFI).

The first in a series of investment opportunities, CVCFI has closed at US$300 million.

Investing in a Grade A commercial real estate in Vietnam, CVCFI will have a life span of eight years.

CapitaLand will hold a 40% stake in CVCFI while the remaining interests will be held by major institutional investors.

Lim Ming Yan, President & Group CEO of CapitaLand, says, “Scaling up in the real estate sector requires strong financial capacity and flexibility. By proactively working with reputable capital partners to build scale, we can be nimble and react fast to seize growth opportunities.”

Lim adds: “CapitaLand Vietnam Commercial Fund I brings us a step closer to our goal of raising funds with total assets under management of up to $10 billion by 2020. It comes on the back of our largest private equity partnership, the US$1.5 billion Raffles City China Investment Partners III, which invests in prime integrated developments in gateway cities in China. As we work with strong capital partners to scale up, we continue to enhance the Group’s returns on equity by generating fee income. In the first half of this year, we earned $95.9 million in fees from non-listed real estate and REIT management activities, which makes up 5% of the group’s revenue.”

Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia. CapitaLand has nine residential developments, 22 serviced residences with over 4,700 units and one international Grade A office development across six cities in Vietnam.

Shares in CapitaLand closed at $3.73 on Monday.