SINGAPORE - CapitaLand has bought a 60,732 square metre prime residential site in Ho Chi Minh City, Vietnam, for 1.38 trillion Vietnamese dong (S$81.4 million) in cash, the property developer said on Thursday (Aug 30) during the midday trading break.
Under the deal, CapitaLand's wholly owned subsidiaries CVH Sparrow, CLV Investment 2 and CLV Investment have acquired 100 per cent of the charter capital of BCLand Joint Stock Co from parties unrelated to CapitaLand. BCLand in turn owns 100 per cent of the charter capital of Doan Nguyen House Business & Investment, which owns the site at Binh Trung Dong Ward, District 2 in Ho Chi Minh City.
CapitaLand has paid 62 per cent of the consideration, with the balance subject to post-completion adjustments.
CapitaLand said that it expects to build more than 100 landed residential units by 2021 on the site, which is in the fast-growing District 2 region of the city. The site sits next to the city's Ring Road 2 and is relatively close to the city's new financial centre and urban area.
"We are pleased to bag another highly coveted site in Vietnam, where our ninth residential development in the fast-growing District 2 of Ho Chi Minh City will be built," CapitaLand group chief executive Lim Ming Yan said in a statement.
"Strong economic development, rapid urbanisation and the rising affluence of its population continue to fuel demand for quality residential developments in the country."
As at June 30, 2018, 93 per cent of CapitaLand's launched residential units in Vietnam have been sold, Mr Lim said. More than 30 per cent of the 2,680 units in Vietnam that have been sold at about S$811 million should be handed over in the second half of 2018.
Vietnam is CapitaLand's third-largest market in South-east Asia, after Singapore and Malaysia. In March, the company announced a joint venture to develop a 0.9 hectare site in Tay Ho District in Hanoi to build an integrated development. Before the latest deal, CapitaLand held a S$1.1 billion portfolio in Vietnam.