Prior to Zen Plaza, Nomura has also partially acquired 24 per cent of ownership interest at multi-let office building Sun Wah Tower - its first office project in Asia Pacific and third one for leasing business, and taken part in the condominium project Phu My Hung Midtown Project.
In June, Nomura has established its overseas subsidiary Nomura Real Estate Vietnam Co., Ltd., the very fifth local office in an Asian country following those in Beijing, Hong Kong, Singapore, and Thailand.
Nomura is currently eyeing further business development in Ho Chi Minh City as considerable growth is expected to continue in the future. The group has chipped in various development projects and conducted investment in office buildings in Ho Chi Minh City, Bangkok, Shenyang, Manila, and other locations.
Overseas business has been identified as an important part of Nomura’s mid- to long-term business plan and it targets to invest approximately 300 billion yen ($2.8 billion) into its overseas subsidiaries by 2028.
Zen Plaza is located on Nguyen Trai Street, District 1 of Ho Chi Minh City. Approximately 90 per cent of the companies occupying the building are foreign companies, and of the 90 per cent, approximately 70 per cent are Japanese companies. By utilising the office building operation management knowledge that Nomura has cultivated in Japan, the group will continue rolling out a reliable, secure, and comfortable office building business.
According to Nomura, although Ho Chi Minh City has enjoyed remarkable economic growth and received a number of foreign companies including Japanese, Grade A-class office buildings are limited and thus demand is expected to grow further in the coming time.
Back in 2015, Nomura collaborated with Daiwa House Industry Co., Ltd., Sumitomo Forestry Co., Ltd. and local project developer Phu My Hung Development Corporation to launch the Phu My Hung Midtown Project in Phu My Hung in District 7 of Ho Chi Minh City. The project is a condominium development targeting company executives, senior professional people and expatriates in Vietnam.
The project will provide a total of approximately 2,100 units. Phase 1 development, starting in 2017, involves the construction of approximately 1,100 units on an area of some 28,000 square metres and a total investment of around $220 million. It is expected to complete in the last quarter of 2019 and will be followed by the second phase for the remaining units.