CapitaLand Development (CLD), the development arm of CapitaLand Group, announced on Dec 14 that it will acquire a prime site for its first large-scale residential project in Vietnam.

The project will have an estimated total gross development value of VND18,330 billion ($1.12 billion).

The site is located in Vietnam’s Binh Duong New City within the Binh Duong province, which is some 30 km away from Ho Chi Minh City.

CLD will acquire the site from an unrelated third-party vendor.

The transaction is expected to be completed by the first half of 2022.

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CLD’s prime large scale residential project encompasses a total area of 18.9 hectares and is expected to comprise over 3,700 freehold residential units.

The project is expected to be launched in phases; construction of the first phase consisting of some 1,300 landed houses and apartments will start in 2022.

The first phase is slated to be completed in 2024 while the rest of the project is scheduled for completion in 2027.

“Vietnam is one of CLD’s core markets given its strong economic fundamentals. Our first prime large scale residential project in Vietnam will showcase CLD’s international expertise in building high-quality and vibrant communities at scale as we utilise our experience in creating iconic and award-winning integrated and urban developments in other countries,” says Jason Leow, CEO of CLD.

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Leow adds that the group “firmly believes in Vietnam’s excellent growth prospects, and we are committed to being a long-term partner to the development of Vietnam’s real estate market”.

Vietnam’s gross domestic product is expected to expand by about 6.5% to 7% from 2022, according to the World Bank

“In addition to residential projects, we continue to explore investment opportunities in new economy assets such as logistics facilities, data centres and business parks. We are also working with local partners and government authorities to seek more large scale residential projects, master planning and urban development opportunities to expand our real estate portfolio in Vietnam," continues Leow.

Ronald Tay, CEO of CLD (Vietnam) says the residential project is CLD’s largest project in Vietnam.

“It also marks our first expansion outside the tier one cities of Ho Chi Minh City and Hanoi where we have a strong presence, to seize opportunities in the fast-growing secondary cities. The Binh Duong province was one of the largest recipients of foreign direct investment in Vietnam, ahead of Hanoi in 1H2021 despite Covid-19,” he says.

“The project is strategically located in Binh Duong New City which has been identified by the local authorities for urban transformation into a modern and smart city focusing on science and technology. As Binh Duong New City urbanises, there will be an increased demand for international-class and well-designed homes from professionals, young families and expatriates working in the surrounding industrial hubs, business parks as well as in other areas such as Thu Duc City.”

As at 9.27am, shares in CapitaLand are trading 2 cents lower or 0.59% down at $3.38.

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