The agreement is the culmination of discussions between the parties pursuant to an MoU announced in 2021 to identify and acquire a suitable project for development in Vietnam.

As intended under the MoU, UOA will hold a 30 per cent stake in the joint venture entity, with CLV holding the remaining 70 per cent.

The $247 development budget will be funded by each party in proportion of their respective ownership, with UOA’s share coming to just over $74 million.

The proposed project is a mixed-use development with an initial proposal consisting of the construction of four high-rise towers comprising residential, commercial and retail spaces, one medium-rise tower comprising residential and retail space, and two low-rise towers offering residential space only.

“We look forward to being a part of this project with CapitaLand as Vietnam continues to develop and offer further opportunities for our company,” read the statement from UOA.

On its homepage, UOA introduces itself as one of the leading real-estate corporations in Malaysia. The company was founded and listed on the Australian Stock Exchange under the name United Oversea Australia Ltd in 1987, focusing on development, construction, investment, and real estate management. Since 1989, UOA has its headquarters and business operations in Kuala Lumpur.

UOA is known in Vietnam for developing a number of real estate projects in Ho Chi Minh City such as UOA Tower, MarQ, and Millennial Tower in Phu My Hung urban area.

Focusing on its core markets of Singapore, China, and Vietnam, CapitaLand's well-established real estate development capabilities spans various asset classes, including integrated developments, retail, office, lodging, residential, business parks, industrial, logistics, and data centres.

CLVs portfolio comprises one retail mall, two integrated developments, and over 13,000 quality homes across 17 residential developments in Vietnam.

In November, CapitaLand acquired an almost 19-hectare (ha) plot of land from Becamex IDC in the economic hub of Binh Duong province and announced a luxury apartment project called Lumi Hanoi, with a total investment of approximately $760 million. With a total land area of nearly 5.6 ha, the project is expected to start construction in the first quarter of 2024.

With an estimated investment capital of approximately $800 million, Sycamore, a subsidiary of CapitaLand plans to build CapitaLand’s first large-scale residential project in Vietnam with more than 460 low-rise villas and about 3,300 apartments, with a total construction area of about 593,000 sq.m.