Property developer CapitaLand has signed a joint venture agreement for a second residential project in Hanoi, Vietnam.
The agreement with Vietnamese real estate developer Hoang Thanh is to jointly develop a 14,000 square metre residential site in Ha Dong district in Hanoi.
Prime Minister Lee Hsien Loong and Vietnamese Prime Minister Nguyen Tan Dung witnessed the signing in Hanoi on Tuesday.
CapitaLand has a 70 per cent stake in the project, while Hoang Thanh will hold the remaining 30 per cent stake.
The site will be developed into four residential towers with about 960 apartments at an estimated total project development cost of S$239 million.
This is CapitaLand’s second joint venture project with Hoang Thanh, following the success of their first Hanoi residential development Mulberry Lane.
The developer said Mulberry Lane received positive response during its recent preview sales when two apartment blocks out of five blocks were released.
About 82 per cent or 451 units of the total 549 units released were sold, at prices ranging from US$121 to US$171 per square foot.
CapitaLand CEO Liew Mun Leong said in a statement that the firm will grow its business in Vietnam to 10 per cent of the group’s total assets, up from the current 1 per cent, over the next three to five years.
Source : Channel NewsAsia – 12 Jan 2010