S’pore JV to build southern metro residential project
Singapore-based CapitaLand Ltd has entered a joint venture (JV) agreement with a Ho Chi Minh City property developer for a US$70 million luxury apartment project in the city.
Under the agreement inked late last week, CapitaLand will set up a joint venture with Saigon South Development Corp (Sadeco) to build 600 high-end apartments in Phu My Hung residential area of District 7.
The project, which covers a 21,000 sq.m. area, is expected to meet housing demand from a growing community of foreign professionals and Vietnam’s increasingly affluent families.
CapitaLand – Southeast Asia’s largest property developer – will obtain a 70 percent stake or $14 million of the total registered capital in the $20 million venture.
The balance of the venture is held by Sadeco, site developer of over 10 projects covering 700ha in Phu My Hung.
The JV is expected to start work on the project over the next six months and complete it within 30 months.
The apartment project is CapitaLand’s second residential development in HCMC.
Earlier this year, the company was licensed to form another joint venture to develop a 23,000 sq.m residential site in An Phu Ward of District 2.
Construction of this 1,000 home-residence is estimated to cost $100 million in total, and is subject to a 50-year lease.
CapitaLand holds an indirect 80 percent stake in the joint venture, in line with its strategy to be a major player in regional property development.
The remaining 20 percent would be held in equal proportion by two Vietnamese companies, Phu Gia Real Estate & Commercial Construction Co. and Thien Duc Trading-Construction Co.
About 300 of the homes in District 2 are scheduled to be built in the first quarter of 2008.
Compiled by Ha Dong
Story from Thanh Nien News
Published: 11 December, 2006, 20:27:21 (GMT+7)
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