CapitaValue Homes, a wholly-owned subsidiary of CapitaLand Group, has signed a joint venture agreement with Vietnamese property developers Khang Dien Sai Gon Real Estate to build 975 value homes on a 29,000 square metre site in Ho Chi Minh City, Vietnam.
The total project cost is estimated to be US$70 million or S$88 million and will developed by a joint venture company set up by both CapitaValue Homes and Khang Dien.
Upon approval of the joint venture company, CapitaValue Homes will hold a 70 per cent stake while Khang Dien will hold a 30 per cent stake of the company.
The project is located in the established residential site of Binh Trung Dong Ward, about nine kilometres or 20 minutes away from Ho Chi Minh City’s Central Business District.
It is close to the upcoming Ho Chi Minh-Long Thanh Highway, as well as the Saigon Sports City and Saigon Golf Mixed-use Development projects.
This is the third value housing project in Asia for CapitaValue Homes, bringing its total pipeline in Asia to 35,000 units.
CapitaValue Home’s other projects are located in District 9, Ho Chi Minh City and Wuhan in Hubei Province, China.
This is also CapitaLand’s sixth residential project in Vietnam, bringing its Vietnamese property portfolio to a total of 5,500 units.
Liew Mun Leong, CEO of CapitaLand, said that with the project, CapitaValue Homes is on track to build 10,000 to 15,000 value homes in China and Vietnam each year over the next three to five years.
Source : Channel NewsAsia – 10 May 2011