CapitaLand Development Sells Capital Place in Hanoi
Posted on 01/20/2022
CapitaLand Development (CLD), the development arm of CapitaLand Group, sold Capital Place, an office building in Hanoi, Vietnam for S$ 751 million (US$ 550 million) to an unrelated-third party.
Capital Place is held under the CapitaLand Vietnam Commercial Value-Added Fund (CVCVF). CLD holds a 50% stake in CVCVF while the remaining interest is held by MEA Commercial Holdings Pte. Ltd. CVCVF was incepted in 2017 with a fund size of S$177 million (US$130 million). The fund is managed by CapitaLand Investment Limited (CLI), the real estate investment management business of CapitaLand Group and a leading global real estate investment manager.
The agreed value of the property was arrived on a willing-buyer and willing-seller basis. Upon completion of the transaction, CVCVF will be fully divested and closed, providing investors in the fund an internal rate of return, net of fees of 34%, almost triple the fund’s hurdle rate. The fund was also able to access regional debt markets to obtain an efficient capital structure which further boosted the fund’s returns.
Capital Place was acquired by CVCVF in 2018. Opened in 2020, Capital Place is strategically located in the heart of Ba Dinh District.
Keywords: Temasek Holdings.
