SINGAPORE (Aug 30): CapitaLand is acquiring a prime site in Ho Chi Minh City for VND1,380 billion ($81.4 million) to build more than 100 landed residential units.
Measuring over 60,000 sqm in total area, CapitaLand is set to build on this site its 13th residential development in Vietnam, targeted for completion by 2021.
The target site is located at Binh Trung Dong Ward in the fast-growing District 2 of Ho Chi Minh City where amenities such as international schools, shopping malls, supermarkets as well as food and beverage outlets abound.
The site is also situated next to Ho Chi Minh City’s Ring Road 2 and six kilometres to the Phu My Bridge, providing convenient access to various key destinations. The Cat Lai Port and Thu Thiem – the new financial centre and urban area of Ho Chi Minh City are close by, while the Central Business District in District 1, Saigon Hi-Tech Park in District 9 and new Phu My Hung urban area in District 7 are a 10-minute drive away.
Near the site, several major infrastructure developments such as the construction of the My Thuy interchange and Cat Lai bridge are underway. When completed, these will further enhance the connectivity of the area.
Lim Ming Yan, CapitaLand’s President & Group CEO, says: “We are pleased to bag another highly coveted site in Vietnam, where our ninth residential development in the fast-growing District 2 of Ho Chi Minh City will be built... CapitaLand has been seeing year-on-year growth in our Vietnam home sales, which are continually contributing to the Group’s earnings. As of 30 June 2018, 93% of CapitaLand’s launched residential units in Vietnam have been sold. We expect to hand over more than 30% of the 2,680 units in Vietnam that have been sold at approximately S$811 million in the second half of 2018.”
Analysts say the proposed development would help CapitaLand counter some expected weakness at home in Singapore amid fresh property-cooling measures.
As at 1.06pm, shares in CapitaLand are trading 1 cent higher at $3.44.