build its seventh residential

CapitaLand is set to build its seventh residential project in Vietnam, an increasingly important market for the developer.

Its wholly owned unit has entered into a 80-20 joint venture with Vietnamese developer Thien Duc Trading-Construction Company to develop a 2.6 ha site in District 2 of Ho Chi Minh City, the company said yesterday.

District 2 is a newly developing area south-east of the Saigon River, while most of the city is on the river's north-western side.

The firm plans an upscale residential project with about 1,000 homes and an estimated total value of US$150 million ($211 million).

The development will increase CapitaLand's Vietnam residential portfolio to more than 7,500 units in Ho Chi Minh City and Hanoi.

CapitaLand said it was one of the top-performing foreign developers in Vietnam in the first half of this year, with 389 residential units sold for about $68 million in all. Its total asset size in Vietnam was $618 million as at the end of June.

President and group chief executive Lim Ming Yan said CapitaLand will fuel further growth via suitable investments and management opportunities in Vietnam.

The new project is on the fringe of the city centre and 10 minutes away from the future central business district in Thu Thiem peninsula, the company said yesterday.

"Vietnam's continued economic growth, rapid urbanisation and a young and growing population will continue to drive demand for real estate in the country," said CapitaLand Vietnam chief executive Chen Lian Pang.

"With four projects in District 2, namely The Vista, ParcSpring, Vista Verde and The Krista, we are confident this new project will appeal to families, working professionals and the expatriate community seeking quality, well-designed homes in a city fringe location."

The Vista is CapitaLand's first project in Vietnam and was developed jointly with Thien Duc, as well as Vietnamese developer Phu Gia Real Estate and Commercial Construction. The first phase of the 750-unit development was launched in 2007. It is 92 per cent sold as at end June, the company said.

The latest development will be Thien Duc's third with CapitaLand.

CapitaLand's wholly owned serviced residence business unit, The Ascott, has also made inroads into Vietnam. It said earlier this month it has secured a management contract for the 200-unit Citadines Central Binh Duong, which expands the firm's portfolio in the country to more than 2,400 units in 15 properties in five locations.