Two come together to build residential project in Hanoi.
The Mitsubishi Corporation and the Bitexco Group established a joint venture on July 27 to develop a residential real estate project in Hanoi’s Hoang Mai district, 8 km southwest of the city center and part of The Manor Central Park, a large-scale mixed-use development.
Mitsubishi will hold 45 per cent of the joint venture and Bitexco 55 per cent, with total investment estimated at 30 billion Japanese Yen ($290 million) in the first phase. During this first phase the joint venture will develop 240 low-rise housing units and two high-rise apartment blocks (comprising 1,036 apartments).
Complete with multiple urban functions, including residential, commercial, office, school and sporting facilities, The Manor Central Park has an overall planned area of nearly 90 ha. Plans by local authorities to merge the area with the adjacent 100 ha memorial park will make it the largest real estate development in the capital.
The Manor Central Park’s overall target is to construct 1,000 low-rise housing units and a total of 7,700 apartments in 17 high-rise buildings.
Bitexco is one of Vietnam’s largest private groups, known for its success in real estate development, hydroelectric power generation, infrastructure development such as highways, utilities such as drinking water, and natural resources, among others. The joint venture marks its first cooperative effort with a foreign partner in the real estate business. It also has Bitexco Financial Tower in Ho Chi Minh City, one of the world’s Top 20 iconic skyscrapers as voted by CNN.
With steady economic growth and an expanding middle class, Vietnam is expected to continue seeing an increase in demand for housing. Amendments to the Law on Housing 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.
The cooperation between the two is expected to provide high value-added and high-quality real estate development products and other related services to the market.