CapitaLand’s expansion plan in Vietnam

The joint venture’s partners are Mitsubishi Estate Asia - a wholly-owned subsidiary of Mitsubishi Estate Company Limited and an affiliate of GIC Real Estate, the real estate investment arm of Government of Singapore Investment Corporation .

CapitaLand (Vietnam) (CVI) will take up a 50 per cent stake in the joint venture, while the balance will be held in equal proportions by MEA and the affiliate of GIC Real Estate. CapitaLand will inject a pipeline of projects into the joint venture company and will undertake project management for these projects located in the prime residential precincts of the two cities.

The first project slated to be injected into the joint venture will be an approximately 34,000 square metre site located at Thanh My Loi Ward in District 2, Ho Chi Minh City. Phase 1 of the development will be a residential development that will offer 962 apartments and will be supported by approximately 7,700sqm of retail space.

CVI has also identified an approximately 14,000sqm site in Mo Lao New Urban Area in Ha Dong District, Hanoi, for injection into the joint venture when it is successfully acquired. The project will comprise four residential towers with about 960 residential apartments.

Chen Lian Pang, CEO of CapitaValue Homes and CEO of CapitaLand (Vietnam), said: “CapitaLand is confident of the growth prospects of the real estate sector in Vietnam.

The country’s real estate sector is supported by its strong economic growth, stable government, coupled with rapid urbanisation and a young and growing population. As Vietnam’s urbanisation gathers pace and its middle class grows in tandem with the improving economy, demand for housing in the major cities is set to rise.”

“We will continue to explore new opportunities to further expand our presence in other real estate segments in Vietnam. We target to grow our business in Vietnam from the current total assets base of SGD$400 million ($305 million) to approximately SGD$2 billion ($1.525 billion) over next three to five years,” Pang added.

In Vietnam, Capitaland group has been already presented in Ho Chi Minh City, Hanoi, Hai Phong and Danang, in the residential and serviced residence sectors.

The group has a development pipeline of over 4,500 apartments in Ho Chi Minh City and Hanoi, comprising four prime residential developments and a quality residential development that is under its new strategic business unit, CapitaValue Homes. It focuses on building affordable homes in Asia.

CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited, has over 1,300 apartment units in eight properties across the four major cities, making it the largest international serviced residence owner-operator in Vietnam.