Singapore-based, CapitaLand, through its wholly-owned subsidiary CapitaLand Vietnam Holdings recently signed a US$40 million joint venture agreement with locally based NovaLand Investment JSC to develop a nine hectare, 500 apartment project in HCMC’s District 9.
The group last week launched its new brand CapitaValue Homes, aiming to develop affordable projects for middle-income homebuyers.
Liew Mun Leong, president and chief executive officer of CapitaLand Group, said CapitaValue Homes are for people buying an affordable home, not speculators. “CapitaLand started the strategic initiative to tap into the genuine and non-speculative demand of locals who have a real need to set up new homes arising from rapid massive urbanization in Vietnam,” says Chen Lian Pang, chief executive officer of CapitaLand Vietnam Holdings, who has also been appointed managing director of the new brand.
He says the group plans to take advantage of its proven track record in property development and strong networks in Vietnam to develop this segment.
CapitaValue Homes plans to provide apartments from 60 to 70 square meters each and will work with local governments to find land for low-cost apartment development. The group is in the last phase to finish its first residential project, The Vista, in HCMC’s District 2 after three years of construction. The project, which is jointly developed with two local developers, Thien Duc and Phu Gia, has five blocks of 28-storey residential towers with 750 residential apartments, 100 serviced apartments and some 35,000 square meters of commercial space. The US$200 million residential project will complete June next year.
The group said Vietnam was its fourth pillar of growth after the core markets of Singapore, China and Australia. CapitaLand’s total investments in Vietnam are expected to grow from its current asset base of S$400 million (around US$310 million) to approximately S$2 billion (around US$1.5 billion) over the next three to five years.
On the sidelines of the ASEAN Summit, another leading Singapore real estate development firm, Keppel Land Limited, said it had signed a joint venture agreement with Hung Phu Real Estate Investment Corp. to develop a US$63 million villa development on 10 hectares in HCMC’s District 9.
The company marked its fourth partnership with Vietnamese partners by signing a joint venture agreement with Tien Phuoc Company to develop a US$115 million villa project covering 13.5 hectares in HCMC. Other joint venture projects underway include The Estella with 1,393 apartments, a 30-hectare mixed-use township and a waterfront residential development in District 12.
Kevin Wong, chief executive officer of Keppel Land, said in a statement that the sell-out success of its first residential development in HCMC, Villa Riviera project, demonstrated that prime villa developments were highly sought after, so it would continue to deliver quality homes in the country.
Another leading property developer from the Singapore, Allgreen Properties, entered Vietnam recently through a partnership with An Phu Corp local real estate company to develop a property project in HCMC.
The US$105 million residential project named Regency Park on 25B Road in HCMC’s District 2 will deliver 515 highend apartments and 12 penthouses in 2013.
The company said in a statement that it had a long term view on its position in the Vietnamese market, and that Vietnam had one of the fastest growing economies in the Asia Pacific region.
Singapore is the fifth largest foreign investor in Vietnam with cumulative investments of US$17.9 billion in registered capital across 851 projects, according to International Enterprise Singapore. These investments span a range of industries including industrial parks, urban infrastructure, hospitality, logistics and port developments.
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