CapitaLand marks 11th residential project in Vietnam by acquiring $177m asset

Singapore property development group CapitaLand Limited has acquired an 870-unit residential development in Vietnam at a total value of S$247 million ($177 million).

The acquisition has propelled the number of CapitaLand’s residential portfolio to 11 projects in Vietnam. Located in District 4, Ho Chi Minh City, it is also its ninth residential unit in this busiest city of the country.

The 1.45-hectare site, close to Saigon River, is designed for two 24-storey towers as well as retail units on the lower floors.

District 4, only five minutes drive from the city’s CBD District 1, was formerly a port city and has been transformed into a residential neighbourhood with a plethora of dining options and lifestyle offerings.

This latest acquisition comes on the back of a year of record home sales growth for CapitaLand in Vietnam.

The newest completed residential development, d’Edge Thao Dien, which was launched in July 2017, sold close to 100 per cent of its 273 units.

Sales in Vietnam during the first nine months of this year has already surpassed the sales of 2016 by 50 per cent, according to Chen Lian Pang, CEO of CapitaLand Vietnam.

“Beyond the residential market, we have made strategic inroads and expanded our footprint in the country with prime assets in gateway cities. To scale up fast and be nimble in seizing opportunities, we are also working with reputable capital partners who want to invest through CapitaLand given our deep local insights and execution know-how,” he said.

With the latest acquisition, the realty firm also plans for the first time in Vietnam, to introduce dual-key apartments to cater to the young and vibrant rental market in District 4, and to attract potential investors.

Vietnam is the group’s third largest market Southeast Asia, after Singapore and Malaysia. By the end of September 2017, CapitaLand had recorded S$2 billion of gross assets in this country, including 11 residential developments, 21 serviced residences with around 4,700 units and one international Grade A office development across six cities in Vietnam.

It aims to boost the presence in Vietnam to a $7.34 billion AUM by 2020 by investments through the CapitaLand Vietnam Commercial Fund I – which hit a final close at $300 million in August.

Also read:

CapitaLand launches first $300m Vietnam private equity fund

CapitaLand acquires Vietnam-based asset for Grade A office development

CapitaLand to ramp up presence in Vietnam, acquire more sites

Capitaland increases stake in Vietnam affiliate in $17.9m deal

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.