Mapletree banks on integrated developments
By Michael Lim
Mapletree Investments, the real estate development, investment and capital management company backed by Temasek Holdings, has been growing its footprint around the globe and across all real estate sectors.
Mapletree first entered Vietnam 12 years ago with a logistics park project. It then ventured into industrial parks, and subsequently diversified into commercial and mixed-use schemes. Acquisitions include Pacific Place in Hanoi, a mixed-use development with office, retail and serviced apartments; and CentrePoint office building in Ho Chi Minh City.
Today, Mapletree owns and manages more than $1.2 billion worth of developments — comprising mixed-use, office, retail, industrial, logistics and residential properties as well as serviced apartments — in Hanoi, Ho Chi Minh City, Binh Duong and Bac Ninh. Hiew Yoon Khong, Mapletree group CEO, says in a statement: “We are exploring Vietnam further, as we view the country to be a key market for Mapletree.”
Mapletree recently launched RichLane Residences, its first residential project in Vietnam, at a starting price of US$95,000 ($133,000) for a studio
Residential project part of mixed-use scheme
A month ago, Mapletree launched its first residential project in Vietnam — RichLane Residences — in District 7 of Ho Chi Minh City. The 243-unit RichLane Residences is a 29-storey condo tower slated for completion in 1Q2018. The architect and interior designer are Singapore-based CPG Consultants and Ong & Ong, respectively.
The starting price for units at RichLane Residences was US$95,000 ($133,000) for a studio, according to marketing agent CBRE. The project registered strong sales when it was launched in Singapore over the weekend of April 1 and 2.
What is significant about RichLane Residences is that it is part of an integrated development by Mapletree called Saigon South Place Complex, which sits on a 4.4ha site in Ho Chi Minh City. It is anchored by the SC VivoCity Mall, a five-storey shopping mall with a gross floor area (GFA) of about 692,000 sq ft.
The mall opened in April 2015 and is more than 90% leased. New-to-market brands include soon-to-be-opened toy store Hamleys, fashion retailers Miss Selfridge and Dorothy Perkins, as well as local musical instrument retailer and distributor Swee Lee. There are also Co.op Xtra hypermarket, a cineplex, F&B outlets and education centres. Modelled after VivoCity in Singapore, the rooftop of SC VivoCity also features a skypark and children’s playground. The mall sees an average of 700,000 visitors a month.
SC Vivocity Mall was developed by a joint venture between Mapletree Investments and Saigon Co.op Investment Development Joint Stock Co, an affiliate of Vietnam retailer Saigon Co.op. Wendy Koh, Mapletree’s regional CEO for Southeast Asia, says: “The mall is positioned as a family-lifestyle mall for middle-to middle-upper-class Vietnamese as well as expatriates.”
Adjacent to RichLane Residences is the 237-room serviced apartment block managed by Oakwood Worldwide, which is wholly-owned by Mapletree. The serviced apartment block is scheduled for completion by year-end and will be operational early next year. Koh says the future Nguyen Van Linh Metro Station is also within walking distance of RichLane Residences, conveniently connecting residents to the rest of Ho Chi Minh City.
The second phase of Saigon South Place Complex is Mapletree Business Centre — Mapletree’s first office development in Vietnam. Tenants in the 17-storey, Grade-A office tower, which will have about 323,000 sq ft in GFA, include Standard Chartered Bank, Vietnamese food manufacturer Uniben, textile company Far Eastern Polytex and IT services company SCC UK. There are plans for two more office towers at Saigon South Place Complex.
Mapletree acquired Kumho Asiana Plaza Saigon in Ho Chi Minh City’s CBD from Asiana Kumho Group in June 2016 for US$215 million
Acquisition of a ‘rare asset’
Saigon South Place Complex will be Mapletree’s second integrated development in Ho Chi Minh City. The first was Kumho Asiana Plaza Saigon in Ho Chi Minh City’s CBD in prime District 1, which it acquired in June 2016 for US$215 million.
Koh: We are also constantly seeking investment opportunities in completed, quality and yield accretive assets in Vietnam’s major cities
Kumho Asiana Plaza was considered one of the most significant acquisitions in Vietnam by a foreign property group last year. It is part of a prime 1.5 million sq ft, mixed-use development with offices, retail space, a hotel and serviced apartments managed by InterContinental Hotels Group.
“Kumho Asiana Plaza is a rare asset given its attributes — size, multiple components with strong occupancies, and location in the heart of the CBD,” says Koh. The acquisition is in line with Mapletree’s overall strategy to invest in strong-yielding assets to further grow its earnings, she adds.
Mapletree is carrying out asset enhancement on the retail space. The group plans to bring in cinema operator CGV, have new F&B concepts as well as renovate the common areas to give the F&B podium a new lease of life. The first phase of renovation will start in June and is scheduled for completion by September.
Meanwhile, the office, hotel and serviced apartments are still operating and have consistently achieved occupancy rates above 90%. These components in the mixed-use development will be renovated in phases over the next two years. In addition to refreshing the property, Mapletree also intends to rename the complex as mPlaza Saigon, effective from June.
The group continues to pursue new opportunities in Hanoi, Ho Chi Minh City and other cities, and is open to all sectors — including office, retail, serviced apartment and residential projects and mixed-use developments. “We are also constantly seeking investment opportunities in completed, quality and yield-accretive assets in Vietnam’s major cities,” says Mapletree’s Koh.
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