Mitsubishi Corporation (MC) will become a partner in a residential development project underway in Hanoi, Vietnam. The project is being developed by Bitexco Group of Companies (BITEXCO), one of the leading real estate developing enterprises in Vietnam.
The project is located in the Hoang Mai District, just 8 km southwest of Hanoi’s city center, and is part of The Manor Central Park (TMCP), a large-scale mixed-use development project being undertaken by BITEXCO, complete with multiple urban functions including residential, commercial, office, school and sporting facilities. The TMCP project has an overall planned area of nearly 90 hectares. Plans by the local authorities to merge this area with the adjacent 100-hectare memorial park will make it the largest real estate development project in Hanoi. During the first phase of cooperation, MC and BITEXCO will establish a joint venture for the development of 240 low-rise housing units and two high-rise condominiums (comprising 1,036 apartment units). The project’s overall target is to construct 1,000 low-rise housing units and a total of 7,700 apartments in 17 high-rise buildings. MC will hold a 45% stake in the joint venture while BITEXCO will hold 55%, with the total investment cost estimated to be 30 billion JPY for the first phase.
BITEXCO is a leading Vietnamese group of companies, well known for its successes in the field of real estate development as well as in hydroelectric power generation, infrastructure development such as highways, utilities such as drinking water, natural resources, etc. This project marks its first cooperation effort with a foreign partner in the real estate business. BITEXCO’s real estate business started with the completion of an office building in Ho Chi Minh City in 2003, followed by the development of housing projects, commercial centers and hotels. In the domestic residential market, it was BITEXCO that established what is now well-known as The Manor brand. Given its expertise and track record in large-scale development initiatives, both in Hanoi and in Ho Chi Minh City, including distinctive designs and concepts such as the BITEXCO Financial Tower, a famous Ho Chi Minh City landmark, BITEXCO has clearly distinguished itself from other developers in the country.
With steady economic growth and an expanding middle class, the Vietnamese market is expected to continue seeing an increase in the demand for housing. Amendments to the housing law in July 2015 that loosened restrictions on the purchase of real estate by foreigners are also likely to provide a boost to the housing market.
BITEXCO’s extensive expertise in the real estate business, together with MC’s know-how in real estate related projects in many countries, as well as the adoption of advanced Japanese technology and products will provide high value-added, high-quality real estate development products and other related services to the Vietnamese market.
Source: Mitsubishi Corporation