A tripartite real estate joint venture including Vietnam’s TT Capital Investment Corporation (TT Capital) and Japanese partners was launched in Ho Chi Minh City this week with the aim of building and marketing about 1,000 affordable apartments each year.
TT Capital, a Ho Chi Minh City-based real estate firm established in 2021, entered into a joint venture with two real estate Japanese firms, namely Cosmos Initia Co. Ltd. and Koterasu Partners Pte. Ltd., in a ceremony held in the city on Tuesday.
The three parties expect to invest about US$150 million over the next five years, after which they will build about 1,000 affordable apartment units every year and offer them at less than VND2 billion ($82,300) apiece.
The joint venture will develop its first residential building project in Di An City of Binh Duong Province, a northern neighbor of Ho Chi Minh City, to provide 2,000 apartments, which cover 50 - 60 square meters each, at the aforementioned price, or VND35 million ($1,440) per square meter.
The capital contribution for the tenement project was completed last month and the project will be commenced officially in mid-2024.
Primary apartment selling prices from 2021 to the first half of 2023 in Binh Duong increased 11 percent year on year, reaching up to VND40 million ($1,640) per square meter in the second quarter, CBRE Vietnam said.
Addressing the ceremony, Nguyen Trung Tin, chairman of TT Capital, said that cooperation with its two Japanese partners will help the company improve its capital source, further promote its existing capability, and quickly launch new products to the market.
“The joint venture is committed to creating housing products of excellent quality to enhance customers’ living experience with our outstanding services,” Tin told the ceremony.
TT Capital’s aspiration is to become a property developer providing the most livable urban towns in Vietnam and the Southeast Asian region, the firm said on its website.
The total local housing demand in Ho Chi Minh City for the period 2021-30 is estimated to be around 37 million square meters but the supply of affordable housing in the city and its surrounding areas remains limited, Nguoi Lao Dong (Laborer) newspaper cited housing analysts.
Therefore, when the joint venture’s target of 1,000 apartments priced under $82,300 each is realized, it will considerably contribute to the supply of the affordable housing segment not only in Binh Duong but also in Ho Chi Minh City and its neighbors.
A subsidiary of Japan’s Daiwa House Group, Cosmos Initia, founded in 1969, engages in real estate sales, rentals, and brokerage activities in Japan.
It has some subsidiaries that participated in developing a number of real estate projects in Vietnam.
Koterasu is an enterprise established in 2020, specializing in cross-border real estate asset management, consultancy on international expansion for Japanese clients, and other fields.
Founder and CEO of Koterasu Masakazu Yamaguchi is a member of the board of Ho Chi Minh City-based An Gia Real Estate Investment and Development Corporation, with which Koterasu signed an agreement in September to invest $10 million.
Speaking at the ceremony, Japanese Consul General in Ho Chi Minh City Ono Masuo wished the joint venture successful operations, contributing good value to the housing development in Vietnam, according to local media.