Capitaland will be developing a 24-storey, 870-unit apartment block with retail areas at a 14,474 square metre site in Ho Chi Minh City, Vietnam. They bought the site for US$38.9 million.

It will be CapitaLand's 11th residential development in Vietnam, with a total value of US$177 million (about S$247 million).

The acquisition is part of its real estate portfolio diversification strategy to strengthen its Vietnamese foothold, according to the developer.

The consideration price matches the adjusted net tangible asset value of the site based on management accounts of the site's owner, CapitaLand said.

According to CapitaLand, this development follows a year of record home sales growth in Vietnam. At its newest residential development, d'Edge Thao Dien in Ho Chi Minh City, almost 100 percent was sold in less than two months after its July 2017 launch.

CapitaLand's FY2016 annual report shows its existing portfolio in Vietnam includes six serviced residences and nine residential projects in various Vietnamese cities plus an integrated development in Ho Chi Minh City. In addition, CapitaLand's philanthropic arm has built schools in two Vietnamese cities.

Source: Straits Times

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