CAPITALAND has entered into a US$42 million joint venture (JV) agreement to develop an 11.7 hectare residential site in Vietnam's Ho Chi Minh City.
Mr Lui (Picture) : Vietnam's growth has led to increased demand for quality homes CapitaLand will take a 75 per cent stake in the venture and inject US$31.5 million cash into the JV company. Local partner Azure City Co will hold the remaining 25 per cent stake.
Azure City is involved in infrastructure and property development.
As lead development manager, CapitaLand plans to build a gated community of about 300 luxurious villas on the site. The project will be ready for launch by the third quarter of 2008.
The site is about 35 minutes from the city centre.
'The site is CapitaLand's third residential project in Ho Chi Minh City,' said Lui Chong Chee, chief executive of CapitaLand's residential arm. 'We are now getting our second condominium project ready for launch by the end of the year.'
CapitaLand said in June that all 273 units offered under the first phase of its maiden Vietnamese residential project The Vista had been booked, at indicative prices of US$1,200-US$1,600 per square metre.
The entire project comprises 750 apartments in five towers. The second phase will be launched soon.
With the three projects, CapitaLand has a pipeline of about 1,600 homes in Ho Chi Minh City.
'Vietnam saw its GDP grow close to 8 per cent in the first half of this year - the highest in five years,' Mr Lui said. 'The strong growth has translated into increased demand for quality homes among affluent local professionals and rising number of expatriates in the country.'
CapitaLand's shares closed 15 cents lower at $7.20 yesterday. The stock has climbed 16.1 per cent since the start of the year.
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