SINGAPORE - Capitaland has bought a 14,474 square metre site in Ho Chi Minh City, Vietnam, for US$38.9 million, to develop into a 24-storey, 870-unit apartment block with a retail component.
The project, the group's 11th residential development in Vietnam, will have a total value of US$177 million (about S$247 million).
The property developer said that the acquisition is part of its strategy to diversify its real estate portfolio and to strengthen its foothold in Vietnam.
The consideration price matches the adjusted net tangible asset value of the site based on management accounts of the site's owner, CapitaLand said.
CapitaLand said its latest acquisition comes on the back of a year of record home sales growth in Vietnam. At the launch of its newest residential development, d'Edge Thao Dien in Ho Chi Minh City, close to 100 per cent of the project was sold in less than two months after its launch in July 2017.
According to CapitaLand's FY2016 annual report, its existing portfolio in Vietnam includes an integrated development in Ho Chi Minh City, six serviced residences and nine residential projects in various Vietnamese cities. The company's philanthropic arm has also built schools in two Vietnamese cities.
