Mitsubishi Corporation announced today (23 Jan) that both the company and Nomura Real Estate Co Ltd have acquired a majority share (80%) in Phase 2 of the Grand Park project in Ho Chi Minh City, Vietnam – which is being undertaken by Vinhomes, Vietnam’s largest developer and a subsidiary of the country’s largest conglomerate Vingroup.
Phase 2 of the project will feature a housing development covering 26 ha and over 10,000 condominium units. The total cost has been estimated to reach 100 billion yen, with completion and delivery scheduled for 2022.
The Grand Park project is a township development covering approximately 271 ha in total. Upon completion, it will have offices, residences, sports and commercial facilities, schools, hospitals, and parks, creating a new town for a residential population of approximately 200,000.
The project is located in the District 9 of Ho Chi Minh City, with a distance of about 20 km from the city centre. It offers convenient access to the Long Thanh Highway, Hanoi Highway, and Route No. 3 (to be completed in 2021). City authorities are also promoting the development of high-tech parks and industrial parks in and around District 9.
The project aims to provide Vietnam’s middle class with high-quality housing optimised to local conditions. It will combine Mitsubishi Corporation's collective capabilities (including its real estate expertise cultivated in Southeast Asia and elsewhere), Nomura Real Estate’s expertise in housing and other real estate ventures, and Vingroup’s popularity in Vietnam.
Moving forward, Mitsubishi Corporation and Nomura Real Estate will pursue opportunities to develop smart cities that take full advantage of the latest technologies and facilities, thereby generating economic, societal and environmental value through its businesses.
As announced in Midterm Corporate Strategy 2021, Mitsubishi Corporation is strengthening its service and downstream businesses to optimise its business portfolio. Through this project, the company intends to not only develop condominiums, but also combine various services and functions that will enhance the town’s value and its own urban-development operations.
Nomura Real Estate Group has positioned overseas business as one of its growth fields. Under its new medium- to long-term management plan, which runs until March 2028, the company plans to invest approximately 300 billion yen in overseas businesses. Meanwhile, Nomura Real Estate is looking to aggressively expand its own overseas businesses, both by breaking into new countries and stepping up developments in countries where it already has a strong presence, such as Thailand, Vietnam, the Philippines and China.
Images: Mitsubishi Corporation