News of CapitaLand’s expansion illustrates their confidence in Vietnamese property.
CapitaLand is keeping its momentum up in Vietnam. Having already been present in the country for 22 years, they have plans to enjoy the country’s positive market outlook that is making Vietnam one of the fastest growing economies in the region.
CLV Investment 5, CapitaLand’s wholly-owned subsidiary, have agreed a USD 17.9 million deal for an extra 20 percent of CapitaLand-Thien Duc Company (CTD). This comes at a time when the Singaporean property developer are diversifying their strategy. The company have acquired a site in District 1 of Ho Chi Minh City to build their first international Grade A office tower.
The acquisition of CTD is to expand on CapitaLand’s presence and their residential development portfolio. Acquiring the 1,152 residential units that make up CTD’s Vista Verde in Ho Chi Minh City, plus two land sites closeby. CapitaLand clearly see the country’s potential.
The office tower will stand at 240-metres in the country’s economic hub of Ho Chi Minh City. Becoming one of the tallest buildings in the city, it could pave the way for future similar high rise developments. Anticipated to open in 2020 to tie in with the metro line that the office tower will be linked to, the site will also incorporate retail units. However, the building will also be walking distance to the area’s popular shopping areas as well as CapitaLand’s luxury serviced residences, Ascott Waterfront Saigon for the convenience of tenants.
The ramping up of CapitaLand’s expansion in the country has resulted in the company setting up another USD 500 million fund just for Vietnam. The intention is to profit from the growing middle class and rise in urbanisation. Plus enjoy the upwards trend of the property market and consistent amount of foreign direct investment received.