CapitaLand has entered into a conditional agreement to purchase a prime commercial site in the CBD of Ho Chi Minh City to develop its first international Grade A office tower in Vietnam.

In a statement issued on Jan 17, CapitaLand says it will have a 100% stake in the 0.6ha site with a gross floor area of 1.14 million sq ft. It plans to develop a 240m international Grade A office tower with retail units on the site’s ground and basement levels. The development, located near the Saigon River in the heart of District 1, will be directly connected to a planned metro station, linking the CBD to the districts of Binh Thanh, 2 and 9.

Construction is expected to start in 1Q this year and slated to complete in 2020 — about the same time the metro line is expected to begin operation.