Two establish joint venture to build upscale residential development in District 2.
CapitaLand, through its wholly-owned subsidiary CapitaLand (Vietnam) Holdings, has entered into a joint venture with the Thien Duc Trading-Construction Company (Thien Duc) to develop a prime site in District 2 in Ho Chi Minh City.
As the lead development manager, CapitaLand plans to develop the site into an upscale residential development with approximately 1,000 homes, at a cost of an estimated $150 million.
CapitaLand is heartened by the continuous growth momentum in Vietnam, which is now the Group’s third-largest market in Southeast Asia, after Singapore and Malaysia, according to Mr. Lim Ming Yan, President & Group CEO.
“We will continue to leverage our robust development capabilities, deep operating expertise, and wide business network to fuel further growth via suitable investments and management opportunities in Vietnam,” he said.
The 2.6-hectare site is located in Thanh My Loi ward in District 2, on the fringe of the city center. It is only ten minutes from the future new CBD on the Thu Thiem peninsula and within easy reach of important transport networks such as the Long Thanh - Dau Giay Highway, the East - West Highway, and the Hanoi Highway.
CapitaLand holds 80 per cent of the joint venture and Thien Duc 20 per cent stake. The joint venture development is CapitaLand’s seventh residential project in Vietnam and will increase its residential portfolio to over 7,500 units, in Ho Chi Minh City and Hanoi.
It was one of the top performing foreign developers in Vietnam in the first half of 2015, selling 389 residential units worth $48.5 million. As at the end of June its total assets in Vietnam stood at $441.3 million.
Thien Duc, a privately-owned Vietnamese real estate company, is one of CapitaLand’s strategic partners in the country and a shareholder of The Vista and Vista Verde - two of CapitaLand’s residential projects in Ho Chi Minh City.