Singapore-based CapitaLand on Tuesday launched its US$300-million private equity fund to boost its real estate expansion in Vietnam .
CapitaLand Vietnam Commercial Fund I (CVCFI) will have a life span of eight years.
CapitaLand will hold a 40 percent stake in CVCFI while the remaining interests will be held by major institutional investors, the company said in a statement.
The realty firm said it is witnessing increasing investor interest in Southeast Asia, in particular Vietnam.
Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia.
The company already has presence in cities like Ho Chi Minh City and Hanoi.
"CapitaLand is positive about the growth trajectory of Vietnam and foresee that this trend will continue for at least the next 10 years," Chief Executive Officer Lim Ming Yan said.
"CapitaLand Vietnam Commercial Fund I brings us a step closer to our goal of raising funds with total assets under management of up to S$10 billion by 2020."
CapitaLand has nine residential developments, 22 serviced residences with over
4,700 units and one international Grade A office development across six cities in Vietnam.
Shares in CapitaLand rose 0.8 percent to S$3.76 on the Singapore Exchange. Stocks has gained 25 percent so far this year.