CapitaLand boosts Vietnam momentum with $78m residential deal

For its 6th property in the country’s capital.

The property conglomerate is bent on strengthening its grasp of the Southeast Asian region, as it strengthens its presence in Vietnam, one of the region’s fastest growing markets.

The deal came hot on the heels of its $200m, 1000-unit upscale project in District 2 last June 2015.

According to a statement by CapitaLand, it plans to develop a one-hectare residential development with approximately 350 units. The latest site is located in the community of Thao Dien ward and will be two kilometers from the new metro line.

“With its proximity to amenities like shopping malls, cinemas and established international schools such as the British International School, Australian International School and European International School, good housing demand is expected from a ready pool of tenants,” the statement said.

CapitaLand will hold an 80% stake and its JV partner, Vietnamese enterprise firm Thanh Nien will hold 20% in the joint venture.

“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. It also presents long-term business relationship potential as we explore more development opportunities with Thanh Nien for several other projects in its pipeline.” said Chen Lian Pang, CEO of CapitaLand Vietnam.