Japan’s Nomura Real Estate drives Asian expansion with Vietnam deal

Japanese property group Nomura Real Estate has bought the Zen Plaza office building in Ho Chi Minh City (HCMC), as the firm expands further throughout Asia. The 14-storey asset has 11,700 sq.m. of net lettable area and is located near the main business district and many Vietnamese fashion boutiques, the buyer announced. The sale price was undisclosed. For Nomura, the transaction is the latest in its overseas expansion ambitions, having announced plans in April to invest about JPY 300bn (US$2.8bn) in overseas real estate over the next nine years. The deal comes as increased demand for grade A office space has exceeded supply levels in HCMC, driving up average asking rent at a rate of roughly 2% to 2.5% a quarter in recent times, says Colliers. The multi-let Zen Plaza faces Nguy?n Trãi Street in District 1 and is mostly occupied by Japanese and other foreign businesses.