Japanese contractor to pour USD1 billion in Vietnam property
Japanese contractor to pour USD1 billion in Vietnam property
Kajima is ready to take on a developer’s mantle
Vietnam’s property market continues to ensnare Japanese firms. The latest: Tokyo-based contractor Kajima, which will be establishing a joint venture with Hanoi-based developer Indochina Capital in October for real estate development opportunities in the country.
The resulting venture, ICC-Kajima, will plough USD1 billion into Vietnam over 10 years, with 50 potential projects in the pipeline, including serviced apartments, hotels, and office buildings. Each project will have an outlay of JPY2 billion (USD19.5 million) to JPY10 billion (USD97.7 million) — four are reportedly set to be launched within 15 months, with a capital totalling USD100 million.
More: Vietnam’s real estate dragon ascends
Although this marks Kajima’s first foray into Vietnam real estate development, the Tokyo-based company was contracted for a hotel project in the country in 1994, the Nikkei Asian Review noted. In addition, the firm already develops property in four countries in Southeast Asia.
Kajima will direct efforts to residential projects in Hanoi, Danang, and Ho Chi Minh City, where it established Kajima Vietnam in April. The company has also acquired a 13-floor mixed-use facility in Danang.
Several Japanese firms have been involved in various developments around Vietnam in the past year, including Creed Group, Tokyu, Hankyu Realty, Nishi-Nippon Railroad, and Sanyo Homes.
Read next: With USD2.32 billion in FDI, Vietnam real estate paints a rosy picture
Source: Property Report