Singaporeans join VN real estate venture

Singapore real estate groups have signed co-operation agreements with Vietnamese partners to promote investment in the real estate market of Viet Nam.

CapitaLand Limited, through its wholly owned subsidiary CapitaLand (Viet Nam) Holdings, on Thursday signed for the first time a joint venture agreement with Vietnamese partner No Va Land Investment Group Corporation to develop a 9,000-square- metre residential site, worth US$40 million, in HCM City’s District 9.

CapitaLand’s investment in Viet Nam is expected to grow from its current asset base of SG$400 million ($322 million) to approximately SG$2 billion ($1.61 billion) over the next three to five years, said Chen Lian Pang, CEO (Southeast Asia) CapitaLand Commercial and CEO of CapitaLand (Viet Nam) Holdings.

“CapitaLand has started a strategic initiative to tap into the genuine and non-speculative demand of the locals who have real need to set up new homes arising from the rapid and massive urbanisation in China and Viet Nam,” Chen said.

“CapitaLand will leverage on its proven track record in property development and its strong network in Viet Nam to tap into opportunities in this segment of the residential sector.”

On the same day, Keppel Land Limited signed a joint venture agreement with Hung Phu Real Estate Investment Corporation to develop a $63-million villa project also in District 9. This is their second real estate partnership deal in the city.

Keppel Land also signed a joint venture agreement with Tien Phuoc Company Ltd to develop a $115-million villa project in HCM City. This is the fourth real estate project the two firms have co-operated on.

“The sell-out success of Keppel Land’s first residential development in HCM City, Villa Riviera, demonstrates that prime villa developments are highly sought after,” Kevin Wong, CEO of Keppel Land, said.

“Keppel Land will continue to leverage our strong relationships and track record in delivering quality homes offering an integrated lifestyle concept to further build its reputation of being the choice developer in Viet Nam.” As of September 2010, Singapore was the fifth largest foreign investor in Viet Nam, with total investments worth $17.9 billion in registered capital in 851 projects. These investments span industrial parks, urban infrastructure, hospitality, logistics to port developments. — VNS

Tags: Capitaland