Vietnam’s first ESG real estate complex in Da Lat to be developed by The One Destination, Terne Holdings, and BTS Fund

The One Destination has recently announced an investment partnership with Singapore-based Terne Holdings and the Asia-focused BTS Bernina Private Equity Fund to build Haus Da Lat, Vietnam’s first ESG-standard real estate complex.

This collaboration marks a major step in sustainable development for Da Lat, with the joint venture partners collectively holding a 30 per cent stake in The One Destination.

Haus Da Lat, situated on 5 hectares of prime land by the tourist city’s renowned Xuan Huong Lake, will be designed by celebrated Japanese architect Kengo Kuma. The project aims to be a new heritage landmark for Da Lat, honoring the city’s 130-year-old legacy and Vietnam’s evolving position on the global ESG real estate map. The project not only reflects sustainable building practices but also enhances Da Lat’s distinctive charm as a “natural heritage” city, which draws visitors with its year-round cool climate, scenic lakes, dense pine forests, and vast flower fields.

The choice to invest in Da Lat also highlights the city’s unique appeal to international partners. On June 20, 2024, Da Lat received a development boost when the Ministry of Transport announced plans to upgrade Lien Khuong Airport to international status, sparking economic growth for Da Lat and Lam Dong Province. In the first half of 2024 alone, Lam Dong attracted over 5 million tourists, a 12 per cent increase from the same period of the previous years. The province is expected to welcome 10 million visitors by the end of 2024, including 550,000 international tourists. The airport expansion plan outlines a significant capacity upgrade by 2030, positioning Da Lat as a prime destination with increased global connectivity.

The One Destination sees Haus Da Lat as a milestone in Vietnam’s real estate landscape, positioning the nation to tap into a burgeoning ESG market. Vietnam’s dynamic economy, averaging 6-7 per cent GDP growth annually, coupled with a rising middle class projected to reach 40 per cent of the population by 2030, is generating high demand for eco-friendly and sustainable developments. Leading companies like The One Destination are at the forefront of this trend, and Haus Da Lat, with its responsible design, choice of materials, and eco-conscious construction methods, is expected to set new ESG standards in Vietnamese real estate, creating long-term value for generations.

Ms. Caroline Lee, Chairwoman of Terne Holdings, affirmed, “Together with The One Destination and BTS, we will create a heritage landmark for Da Lat. We are proud to be among the pioneering foreign investors working alongside Vietnam’s real estate developers to build and preserve Da Lat in the face of the city’s concrete overdevelopment.”

Additionally, Terne Holdings highlighted that Haus Da Lat aligns closely with its own ESG strategy, which is built on practical, measurable initiatives in line with 12 United Nations Sustainable Development Goals (SDGs).

Haus Da Lat will be a legacy project for Da Lat and Vietnam’s first major ESG landmark, A representative from The One Destination added, noting that the project also anticipates collaboration with five leading international brands to establish an iconic new real estate model for the mountainous city.