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CapitaLand in JV to develop site in Ho Chi Minh City for US$55m
CAPITALAND Vietnam has entered into a joint venture with Saigon Commercial & Tourism Corporation, a subsidiary of Vietnamese developer Thanh Nien Corporation, to develop a prime site in District 2 in Ho Chi Minh City, for an estimated project value of US$55 million.
This will mark CapitaLand's sixth residential project in Ho Chi Minh City, and its eighth in the country. CapitaLand will hold an 80 per cent stake and Thanh Nien will hold the balance 20 per cent stake in the joint venture.
Pending regulatory approval, the move comes hot on the heels of the joint venture CapitaLand formed with Thien Duc Trading-Construction Company in June to develop a S$200 million, 1,000-unit upscale project in District 2.
"This CapitaLand-Thanh Nien partnership will increase CapitaLand's residential portfolio in Vietnam to about 7,850 homes across Ho Chi Minh City and Hanoi," said Chen Lian Pang, CEO of CapitaLand Vietnam. "It also presents long-term business relationship potential as we explore more development opportunities with Thanh Nien for several other projects in its pipeline."
In the first nine months of this year, CapitaLand sold 873 units, achieving sales of about S$138.5 million and becoming one of the top foreign developers in Vietnam in sales performance. As at end June 2015, CapitaLand's total asset size in Vietnam is S$618 million.
CapitaLand said it will be holding the maiden Singapore launch of two of its Vietnam properties - Vista Verde and The Vista - on Nov 7 and Nov 8. This comes after strong interest from investors here during a special preview held earlier on Oct 25. Both Vista Verde and The Vista are within a 15-minute drive from the existing CBD in District 1.
In July, Vietnam introduced a slew of legislative changes to allow foreign investment and ownership of real estate. Previously, foreigners could only lease one property in Vietnam. Now, foreigners can buy and own more than one 50-year leasehold property in Vietnam for their own occupation, lease or resale. In addition, Singapore developers will now be able to not just sell their units onshore in Vietnam, but also market them in Singapore.