CapitaLand Development to acquire residential site in Binh Duong for S$1.1b

REAL estate developer CapitaLand Development (CLD) - the development arm of CapitaLand Group - will acquire a prime site in Binh Duong New City, Vietnam for a projected total gross development value of about S$1.1 billion.

The 18.9 ha site, one of the largest investment by CLD in Vietnam in terms of dollar value, will be developed into a large-scale residential project with more than 3,700 freehold residential units for about 13,000 residents.

CLD will acquire the site from an unrelated third-party and the transaction is expected to be completed by the first half of 2022.

The project is expected to be launched in phases and construction of the first phase is slated to be in 2024, while the rest of the project is scheduled for completion in 2027, said CLD.

With the addition of the project, CLD will have more than 12,000 units across 16 residential developments located in 3 cities in Vietnam.

Located along Hung Vuong boulevard - one of the two main boulevards in Binh Duong New City - the site is within a 5 minute drive to Vietnam's largest trade centre, which has an international exhibition centre, shopping centre, offices, hotels, and a metro station linked to Ho Chi Minh City Metro Line 1.

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It is also a 40 minute drive to Thu Duc City, a smart city district in Ho Chi Minh City with a growing workforce, and the newly opened My Phuoc - Tan Van Expressway has shortened the drive from the site to Ho Chi Minh City's central business district to about an hour, said CLD.

Residents interested in the project would be able to choose from 7 residential communities, with each community having private entrances.

Two of the residential communities will offer terraced houses, semi-detached houses and villas with private clubhouses and gardens, while another offers a 10-storey apartment building, said CLD.

Four of the remaining residential communities will each have a 24-storey tower that will come with food and beverage as well as retail options, such as a convenience store, cafe, restaurants and spas.

Jason Leow, CLD's CEO, said the project will showcase the property developer's international expertise in building high-quality and vibrant communities at scale.

He added that CLD believes in Vietnam's excellent growth prospects, and will continue to explore investment opportunities there in new economy assets such as logistics facilities, data centres and business parks.

Ronald Tay, chief executive officer of CLD's arm in Vietnam, said: "This residential project is our largest project in Vietnam, boosting our pipeline of residential units in the country."

"It also marks our first expansion outside the tier one cities of Ho Chi Minh and Hanoi where we have a strong presence, to seize opportunities in the fast-growing secondary cities," he added.