SINGAPORE - CapitaLand is set to build its seventh residential project in Vietnam, an increasingly important market for the developer.
Its wholly-owned unit has entered into a 80-20 joint venture with Vietnamese developer Thien Duc Trading-Construction Company to develop a 2.6 hectar site in Ho Chi Minh City, the company said on Tuesday.
The firm plans an upscale residential project with about 1,000 homes and an estimated total value of US$150 million (S$211 million).
The development will increase CapitaLand's Vietnam residential portfolio to more than 7,500 units in Ho Chi Minh City and Hanoi.
CapitaLand said it was one of the top-performing foreign developers in Vietnam in the first half of this year, with 389 residential units sold for about US$68 million in all. Its total asset size in Vietnam was US$618 million as at the end of June.
President and group chief executive Lim Ming Yan said CapitaLand will fuel further growth via suitable investments and management opportunities in Vietnam.
"Vietnam's continued economic growth, rapid urbanisation and a young and growing population will continue to drive demand for real estate in the country," said CapitaLand Vietnam chief executive Chen Lian Pang.
CapitaLand's wholly owned serviced residence business unit, The Ascott, has also made inroads into Vietnam. It said earlier this month it has secured a management contract for the 200-unit Citadines Central Binh Duong, which expands the firm's portfolio in the country to more than 2,400 units in 15 properties in five locations.