CapitaLand to develop sixth residential site in Vietnam

In a third joint venture with Khang Dien Sai Gon Real Estate JSC, CapitaLand will develop a 29,000 sq m site into 974 units of value homes.

According to DBS Vickers, the site is located about 9km from HCMC's Central Business District and is in close proximity to Saigon Sports City.

The total project cost is US$70 million (S$88 million) and CapitaLand will take 70% of this project and its JV partner the remaining 30%. The deal is still subject to approval from the Vietnamese authorities.

This will be the group's sixth development in Vietnam (total 5,500 units) and the third value home project in Asia and boost Capitaland's pipeline of value homes in Asia to 3,500 units. It is on track to build 10,000-15,000 value homes in China and Vietnam over the next 3-5 years. Acquisition of a 40% stake in Surbana Pte Ltd, to tap into its expertise in this area, is also expected to help accelerate the group's expansion into this arena.