SINGAPORE - Real estate company Frasers Centrepoint Limited (FCL) will develop a residential and commercial project in Ho Chi Minh City together with a Vietnam-listed joint venture partner.

The project, located on a one-hectare prime residential site, will be built by FCL and boutique developer An Duong Thao Dien Real Estate Trading Investment Joint Stock Company (ADTD) at an estimated total development cost of US$85 million (approximately S$115 million).

This will be done through a joint venture, which involves FCL purchasing a 70 per cent stake in a company called G Homes House Development Joint Stock Company from ADTD and other existing shareholders. The remaining 30 per cent stake will continue to be held by ADTD and other existing shareholders.

Thejoint development is expected to comprise condominium units with panoramic views of the Saigon River, townhouses and villas for sale, as well as serviced apartments and retail shops. It is located on a prime residential site in Thao Dien Ward, which will be served by the city's first metro line scheduled to be completed in 2020.

"The macro trends in Vietnam, such as a growing middle class, rising urbanisation and increasing income, coupled with the improving financial environment and relaxation of foreign investment rules, make this an exciting time for real estate in Vietnam," said Mr Lim Ee Seng, the group chief executive officer of FCL.

FCL already has a presence in Vietnam. The company owns an office building, Me Linh Point, in Ho Chi Minh City, and is also managing two serviced apartment properties- the 185-unit Fraser Suites Hanoi and 175-unit Capri by Fraser, Ho Chi Minh City.