CapitaLand acquires prime site in Ho Chi Minh City for US$51.9m

CapitaLand's 17-storey residential tower and 22-storey Somerset serviced residence in the prime District 1 of Ho Chi Minh City.
CapitaLand's 17-storey residential tower and 22-storey Somerset serviced residence in the prime District 1 of Ho Chi Minh City.PHOTO: CAPITALAND

SINGAPORE - CapitaLand, through its wholly owned subsidiary, CapitaLand (Vietnam) Holdings, has acquired a prime site in District 1 of Ho Chi Minh City, for US$51.9 million (S$70.2 million).

CapitaLand will hold a 100 per cent stake in the 0.5-hectare site which will potentially offer 302 units across two towers - a 17-storey residential tower and a 22-storey serviced residence tower.

With an estimated project value of US$106 million (S$143 million) when completed, this development will be CapitaLand's ninth residential project and 19th serviced residence in the country.

The serviced residence will be managed by CapitaLand's wholly owned unit, The Ascott Ltd, under its Somerset brand.

Said Mr Chen Lian Pang, CEO of CapitaLand Vietnam: "This is CapitaLand's third acquisition in Vietnam since June 2015, a testament of our confidence in Vietnam's positive economic outlook.

"In 2015, CapitaLand was among the top-performing foreign developers in Vietnam with 1,321 residential units sold at a 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 per cent in the sales value and volume on a year-on-year basis."

As at end June 2016, CapitaLand's total asset size in Vietnam is S$748 million, making it the group's third largest market in Southeast Asia, after Singapore and Malaysia.