With the purchase of a prime land site in the heart of Ho Chi Minh City for $68 million, United Overseas Australia has increased its presence in Vietnam.
The developer's long-term growth strategy is strengthened by the move, which also puts it in a position to benefit from the city's potential as a regional financial center.
United Overseas Australia Ltd. (UOA), which is listed on both the Australian Securities Exchange and the Singapore Exchange, completed the acquisition of all of VIAS Hong Ngoc Bao JSC on Friday, September 26.
The agreement guarantees a 2,000-square-meter plot of land in what was once District 1, which will be the site of the upcoming $120 million International Financial Center in Ho Chi Minh City.
Dickson Kong, head of investment at UOA Group, claims that the government's calculated investments in high-tech infrastructure and industries are propelling Vietnam's rise as a new financial and technological center in the region.
Kong said, as quoted by Vietnam Investment Review, "This acquisition increases UOA's total leasable office space in Ho Chi Minh City to nearly 120,000sq.m. At the same time, we are actively seeking opportunities to develop modern, sustainable residential communities that contribute to Vietnam's green urban growth, building on the group's established reputation and track record in Malaysia."
Together with current assets in Australia, Malaysia, Singapore, and Vietnam, the investment—which was funded by UOA's internal reserves—is a component of the group's diversification strategy to increase the size of its portfolio and guarantee steady recurring income.
A contemporary Grade A office building with a gross floor area of about 20,000 square metres will be constructed on the site. Later this year, construction is planned to begin, and completion is anticipated in Q2 2028.
Last year, UOA made news when it teamed up with CapitaLand Development, one of Singapore's top real estate developers, on the roughly 3,500-unit Sycamore residential development in Ho Chi Minh City's Binh Duong ward.
Additionally, UOA's portfolio in Vietnam consists of Grade A office buildings in the Phu My Hung urban area, including Millennial Tower and UOA Tower.
The project will benefit from the established business ecosystem, rich urban amenities, and the continuous improvement of transportation infrastructure due to its convenient location in the heart of the city, surrounded by Grade A and B office towers and home to major domestic companies, financial institutions, and multinational corporations.
Specifically, the North-South high-speed railway and Metro Line 4's future operations will greatly improve connectivity and the area's worth.
Three UOA wholly owned subsidiaries were used to complete the acquisition. encompassing UOA, UTD, and UTM Vietnam.
One of Asia's top real estate developers, UOA Group was established in 1987 and has vast experience providing full-service real estate solutions along the value chain, from asset management to development, investment, and construction.
In addition to its Vietnam subsidiary, UOA Vietnam, the group also conducts business through listed companies in Australia, Singapore, and Malaysia.
Although UOA Development Bhd is in charge of its main operations in Malaysia, UOA is also growing into Singapore, Vietnam, and Australia. Its diverse portfolio includes everything from large-scale commercial and residential developments in major cities to hospitality projects and state-of-the-art medical facilities.
