Real estate developer Mapletree expands its operations in Vietnam, buys Kumho Asiana Plaza in Ho Chi Minh City

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Singapore based Mapletree Investments, yesterday announced the acquisition of Vietnamese landmark building, Kumho Asiana Plaza in Ho Chi Minh City.

Mapletree purchased the asset from Kumho Industrial Company Limited and Asiana Airlines Incorporated. According to the firm, the deal is its largest acquisition involving a completed, income-producing property in Vietnam.

Kumho Asiana Plaza, one of the largest mixed-use properties is located along Le Duan Boulevard and Hai Ba Trung Street in the heart of HCMC’s central business district. Its gross floor area is about 146,000 square metres. It comprises Grade A offices, highly-rated serviced apartments and a hotel managed by InterContinental Hotels Group, as well as a variety of food & beverage offerings.

Mapletree is a leading real estate development, investment and capital management company focused on delivering value to its stakeholders through its asset-light business model that maximises capital efficiency. The investment firm believes this income-yielding asset will expand its business in Vietnam, and deliver strong earnings and returns.

Hiew Yoon Khong, Mapletree Group Chief Executive Officer said,

Kumho Asiana Plaza is a rare asset given its attributes such as size, its multiple components with strong occupancies, and location in the heart of HCMC’s central business district. We are glad to have seized this opportunity to acquire such a quality, income-producing property in Vietnam. 

He further told that they are also keen to invest in greenfield opportunities to develop office, retail, residential, serviced apartment and mixed-use developments, either on their own or with local partners.

Mapletree entered Vietnam in 2005, and today owns and manages a portfolio comprising office, retail, industrial, logistics, and serviced apartment assets. Including Kumho Asiana Plaza, the Group now has over S$1 billion in assets under management in the country. It is also in the midst of developing Saigon South Place and the work on Grade A office tower is expected to be completed by end 2016, while construction of an internationally-operated serviced apartment building and a residential block will start soon and both are scheduled for completion by early 2018.

While the transaction amount is not revealed in the official press release, it is speculated that Asiana Airlines Inc. sold 50 percent stake in Kumho Asiana Plaza for US$ 107.5 million and Kumho Industrial also sold its 50 percent stake at the same amount of money. We’ve mailed Mapletree for a confirmation regarding the same, and will get back to you as soon as we receive an official comment.


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