A unit of local property
giant CapitaLand has entered into a joint venture with a Vietnamese company to
develop a prime residential site in Ho Chi Minh City.
The US$55 million (S$76.7
million) project will be CapitaLand's sixth residential project in the city,
and its eighth in Vietnam.
CapitaLand Vietnam will
work with Saigon Commercial & Tourism Corporation, a subsidiary company of
Thanh Nien Corporation, to develop the site in a major expatriate area - Thao
Dien ward in District 2.
There are plans to develop
a 1ha residential development with about 350 units.
The development is
pending regulatory approval.
CapitaLand will hold an
80 per cent stake in the venture and Thanh Nien will hold the rest.
"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 CapitaLand Vietnam chief executive Chen Lian Pang in a
statement filed with the Singapore Exchange yesterday.
"It also presents
long-term business relationship potential as we explore more development
opportunities with Thanh Nien for several other projects in its pipeline."
Mr Chen said the company
sold 873 units in the first nine months of 2015, achieving sales of about
$138.5 million, making it one of the top- performing foreign developers in
Vietnam.
CapitaLand's total asset
size in Vietnam was $618 million as at the end of June.
In July, a slew of
legislative changes was announced in Vietnam to allow foreign investment and
ownership of real estate in the country.
Previously, foreigners
could lease only one property in Vietnam. Now, they can buy and own more than
one 50-year leasehold property there for their own occupation, lease or to sell
it.
In addition, Singapore
developers will now be able to not just sell their units onshore in Vietnam,
but also market them in Singapore.
In the light of this change, CapitaLand will be launching two of its
Vietnam properties in Singapore for the first time - Vista
Verde and The
Vista - on Nov 7 and 8.
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