CapitaLand Limited announced on Aug 22 that it has set up its first commercial fund in Vietnam – CapitaLand Vietnam Commercial Fund I (CVCFI). The fund closed at US$300 million ($408 million), which will be invested in a Grade A commercial real estate in Vietnam, and will have a life span of eight years, CapitaLand will hold a 40% stake with the remainder held by major institutional investors.

“CapitaLand Vietnam Commercial Fund I brings us a step closer to our goal of raising funds with total assets under management of up to $10 billion by 2020,” says Lim Ming Yan, President & Group CEO of CapitaLand.

“As we work with strong capital partners to scale up, we continue to enhance the Group’s returns on equity by generating fee income,” says Lim. In 1H2017, CapitaLand earned $95.9 million, which makes up 5% of the group’s revenue, in fees from non-listed real estate and REIT management activities.