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News Release Cvh Khang Dien
1. For Immediate Release
10 May 2011
NEWS RELEASE
CapitaValue Homes to develop its third value housing project
CapitaLand’s sixth residential development in Vietnam
Singapore, 10 May 2011 – CapitaValue Homes Limited, a wholly-owned subsidiary of CapitaLand
Limited, has through a subsidiary, signed a Joint Venture Agreement with Khang Dien Sai Gon Real
Estate JSC, a subsidiary of Khang Dien House Trading and Investment JSC (“Khang Dien”), to jointly
develop an approximately 29,000 square metre site in District 2, Ho Chi Minh City, Vietnam.
CapitaValue Homes will lead the development and build 974 value homes on the site. The total
project development cost is estimated to be US$70 million (approximately S$88 million). The
incorporation of the joint venture company between CapitaValue Homes and Khang Dien is subject to
the approval of the Vietnamese authorities. The joint venture is conditional on and subject to the
fulfillment of several conditions precedent. Upon obtaining the necessary approvals and the
satisfaction of the conditions precedent, CapitaValue Homes and Khang Dien will hold 70% and 30%
stake, respectively, in the joint venture company. Further details relating to the incorporation of the
joint venture company will be announced when it is incorporated.
Located in Binh Trung Dong Ward, an established residential site with amenities and infrastructure,
the site is located approximately nine kilometers or 20 minutes away from Ho Chi Minh City’s Central
Business District. The site sits close to the future Ho Chi Minh - Long Thanh Highway and is within
close proximity to the Saigon Sports City and Saigon Golf Mixed-use Development projects. The
project is CapitaValue Homes’ third value housing development in Asia, bringing its pipeline of value
homes to more than 3,500 units in Asia. CapitaValue Homes’ two other value homes projects are
located in District 9, Ho Chi Minh City, Vietnam and Wuhan, Hubei Province, China. The project is
also CapitaLand’s sixth residential development in Vietnam. Overall in Vietnam, CapitaLand has a
residential portfolio of over 5,500 units across six developments in Ho Chi Minh City and Hanoi.
Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “Leveraging on CapitaLand
Group’s established network and development platform in China and Vietnam, CapitaValue Homes is
a new strategic business unit set up to capitalise on the untapped demand for good value homes in
Asia. To further accelerate our expansion into value housing segment, we have acquired 40% stake in
Surbana to leverage on its expertise in the development of mass market housing. We are on track for
expansion into value housing segment and to build 10,000 to 15,000 value homes in China and
Vietnam annually over the next three to five years.”
Mr Chen Lian Pang, CEO of CapitaValue Homes Limited, said: “We envisage each of our value
housing development to be a vibrant living community sought after by young executives, first-time
homebuyers and home upgraders to set up their homes. To ensure value for money and cost
efficiency, CapitaValue Homes will adopt standardised designs using industrialised construction
method. Our value homes will also feature basic functional facilities that best suit the needs of
Professionals, Managers, Executives and Technicians (PMETs) while keeping the prices attractive.
Our third value housing project will comprise six mid-rise blocks and a park by the river as well as
other basic amenities within the development.”
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2. Mr Ly Dien Son, Chairman and General Director of Khang Dien House Trading and Investment JSC,
said: “We are pleased to partner CapitaLand, one of Asia’s largest real estate companies. With
CapitaLand’s international experience and excellent track record in real estate development, project
management and real estate financial services, we are confident that our first collaboration in Ho Chi
Minh City will meet the needs of the mass market homebuyers who have the highest fundamental
demand for housing.”
Tapping on growing demand for value housing in Asia
In Asia, the rapid pace of urbanisation and the rising middle class, coupled with escalating home
prices have created a growth potential in the value housing segment. CapitaValue Homes is a new
strategic business unit set up in October 2010 to capitalise on the growing demand for value housing
in Asia.
With an initial focus in China and Vietnam, CapitaValue Homes will build good value homes targeted
at mass market homebuyers. This segment comprises the first-time homebuyers, home upgraders
and young executives whose mortgage repayment is pegged at no more than 40% of their average
household income level.
CapitaValue Homes will build value homes located within 60 minutes of travelling time from the city
centre and supported by good transportation connectivity. At an average size of about 60 to 90 square
metres, each unit will feature functional and standardised design with basic finishes. Residents will
also be able to enjoy good landscaping and communal facilities like playgrounds and centres for
community activities.
Location Map of site at District 2, Ho Chi Minh City, Vietnam
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3. About CapitaLand in Vietnam
Vietnam is CapitaLand’s fourth pillar of growth in addition to its core markets of China, Singapore and
Australia. The real estate market in Vietnam is supported by the country’s strong economic growth
coupled with rapid urbanisation and its young and hardworking population. CapitaLand is committed
to being a long-term real estate player in Vietnam.
Currently, the Group's presence in Vietnam is in Ho Chi Minh City, Hanoi, Hai Phong and Danang, in
the residential and serviced residence sectors. In the residential sector, the Group has a portfolio of
over 5,500 units in Ho Chi Minh City and Hanoi, comprising four prime residential developments and
two value housing developments.
Its wholly-owned serviced residence business unit, The Ascott Limited, has over 1,300 apartment
units in nine properties across the four major cities, making it the largest international serviced
residence owner-operator in Vietnam.
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About Khang Dien House Trading and Investment JSC
Khang Dien House Trading and Investment JSC was established in December 2001 with a total
chartered capital of VND 32 billion. The company was privatised and converted to joint stock company
in May 2007 and its chartered capital was increased to VND 216 billion (~US$ 11 million).
In 2010, the company was listed on Hochiminh Stock Exchange (HOSE) with the stock code “KDH”.
Its chartered capital was then VND 439 billion (US$ 22.5 million) while the market capitalization was
VND 1,966 billion (US$ 100.8 million). In 2010, the company had a total turn-over of VND 898 billion
(US$ 46 million) and net profit of VND 203 billion (US$ 10.4 million, margin 22.6%).
Khang Dien’s core business is in real estate investment & development. They have completed several
projects including Topia garden with 255 villas & townhouses on 6ha land, the 10.4ha Khang Dien
Phuoc Long B in 2005 and the River Town project with 197 villas and townhouses on 7.1ha land. The
company owns a good pipeline of 17 projects, strategically in District 2 and District 9, with a total land
area of about 100 hectare.
About CapitaLand Group (www.capitaland.com)
CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, the
multi-local company's core businesses in real estate, hospitality and real estate financial services are
focused in growth cities in Asia Pacific and Europe.
The company's real estate and hospitality portfolio, which includes homes, offices, shopping malls,
serviced residences and mixed developments spans more than 110 cities in over 20 countries.
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CapitaLand also leverages on its significant asset base, real estate domain knowledge, financial skills
and extensive market network to develop real estate financial products and services in Singapore and
the region.
The listed entities of the CapitaLand Group include Australand, CapitaMalls Asia, CapitaMall Trust,
CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, CapitaMalls Malaysia
Trust and Quill Capita Trust.
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