A unit of local property giant CapitaLand has entered into a joint venture with a Vietnamese company to develop a prime residential site in Ho Chi Minh City.
The US$55 million (S$76.7 million) project will be CapitaLand's sixth residential project in the city, and its eighth in Vietnam.
CapitaLand Vietnam will work with Saigon Commercial & Tourism Corporation, a subsidiary company of Thanh Nien Corporation, to develop the site in a major expatriate area - Thao Dien ward in District 2.
There are plans to develop a 1ha residential development with about 350 units.
The development is pending regulatory approval.
CapitaLand will hold an 80 per cent stake in the venture and Thanh Nien will hold the rest.
"This CapitaLand-Thanh Nien partnership will increase CapitaLand's residential portfolio in Vietnam to about 7,850 homes across Ho Chi Minh City and Hanoi," said CapitaLand Vietnam chief executive Chen Lian Pang in a statement filed with the Singapore Exchange yesterday.
"It also presents long-term business relationship potential as we explore more development opportunities with Thanh Nien for several other projects in its pipeline."
Mr Chen said the company sold 873 units in the first nine months of 2015, achieving sales of about $138.5 million, making it one of the top-performing foreign developers in Vietnam.
CapitaLand's total asset size in Vietnam was $618 million as at the end of June.
In July, a slew of legislative changes was announced in Vietnam to allow foreign investment and ownership of real estate in the country.
Previously, foreigners could lease only one property in Vietnam. Now, they can buy and own more than one 50-year leasehold property there for their own occupation, lease or to sell it.
In addition, Singapore developers will now be able to not just sell their units onshore in Vietnam, but also market them in Singapore.
In the light of this change, CapitaLand will be launching two of its Vietnam properties in Singapore for the first time - Vista Verde and The Vista - on Nov 7 and 8.