A joint venture between a Singaporean and Vietnamese firm turned the first sod on Thursday for a multimillion-dollar business park at the Ho Chi Minh City-based Saigon Hi-Tech Park.

The 12-hectare integrated business park OneHub Saigon will be developed in three phases, at an estimated cost of approximately US$130 million, Ascendas said in a press release the same day.

The Singaporean side holds a 60 percent stake in the joint venture with Vietnam’s Saigon Bund Capital Partners.

The Thursday groundbreaking ceremony kicked off the construction of Phase 1 of the integrated development project, which will cost $80 million, according to Ascendas.

The first phase, expected to be completed by 2018, will include more than 12,000 square meters of business park space, supported by lifestyle amenities that consist of a mixed-use commercial development with retail components to meet existing demand in the vicinity.

“This development sets a new benchmark for business parks in Vietnam, comprising quality business park spaces ideal for companies in the hi-tech and supporting industries,” the Singaporean firm said.

Ascendas and Saigon Bund Capital Partners signed the deal to set up the Ascendas Saigon Bund Co. Ltd. joint venture in September last year, and OneHub Saigon is the third business park project in Vietnam of the Singaporean firm, according to Reuters.

“This project deepens our presence in Vietnam and allows us to build a vibrant, integrated business community that will facilitate the growth of enterprises and industries in Vietnam,” Manohar Khiatani, president and group chief executive officer of Ascendas, said.

“OneHub Saigon will also further strengthen our position as a preferred partner for local and foreign companies seeking expansion in Vietnam and Southeast Asia.”

In the meantime, Ascendas Saigon Bund chairman Vo Sy Nhan believes that OneHub Saigon will be “well-placed to serve the needs of Vietnam’s thriving industries and business communities.”

Ascendas is a member of Ascendas-Singbridge group and is Asia’s leading provider of business space solutions, whereas Saigon Bund Capital Partners is an investment company with offices in Ho Chi Minh City and Hong Kong.

Located in the heart of District 9 and Thu Duc District, just 15 kilometers from downtown Ho Chi Minh City, and spanning over 900 hectares, the Saigon Hi-Tech Park is one of the most successful hi-tech parks in Vietnam and considered one of the city’s five focal economic projects to drive its development till 2025.

As of August 2015, the park had attracted capital investments from almost 100 multinational companies, exceeding $4.7 billion.

Key tenants at the Saigon Hi-Tech Park include Samsung, Intel, Nidec, Sanofi Aventis, Air Liquide, Datalogic, and leading Vietnamese companies such as FPT, Hutech, and Nanogen.

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