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.