CapitaLand acquires prime site in Vietnam for US$51.9m
The 0.5ha site will comprise a 22-storey serviced residence tower and a 17-storey residential tower. Source: CapitaLand
CapitaLand Vietnam, a unit of property giant CapitaLand, has purchased a prime site at District 1 in Ho Chi Minh City for US$51.9 million (S$70 million).
The property developer will hold a 100 percent stake in the 0.5ha site, which could potentially offer 302 units across two towers – a 22-storey serviced residence tower and a 17-storey residential tower.
The project will have an estimated value of US$106 million (approximately S$143 million) when completed. This is CapitaLand’s 19th serviced residence and ninth residential project in Vietnam.
The 200-unit serviced residence will feature two- and three-bedroom apartments as well as penthouse units, with amenities including a fitness centre, swimming pool and children’s playground. It will be managed by CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited, under its Somerset brand.
The 102-unit residential tower, on the other hand, will contain two- to four-bedroom apartments and penthouses. Set to launch in Q4 2016, it will be the first residential project in Vietnam to offer concierge services.
“This is CapitaLand’s third acquisition in Vietnam since June 2015, a testament of our confidence in Vietnam’s positive economic outlook,” said CapitaLand Vietnam CEO Chen Lian Pang.
He revealed that CapitaLand emerged as one the country’s top-performing foreign developers in 2015, with 1,321 residential units sold at a total value of S$226.5 million.
“Our residential sales continued to perform well in the first half of 2016 with 470 units worth about S$80 million sold, which translates to an increase of about 20 percent in the sales value and volume on a year-on-year basis. We are confident that our residential developments in Hanoi and Ho Chi Minh City will continue to attract home buyers and investors seeking quality, well-designed and well-located homes with good potential for appreciation in value,” said Chen.
CapitaLand’s total asset size in Vietnam stood at S$748 million as at end-June, making the country the third largest market for the group in Southeast Asia, after Singapore and Malaysia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
