CapitaValue Homes Ltd, a wholly-owned subsidiary of CapitaLand that focuses on building good value homes in Asia, has acquired a 65 percent stake in Quoc Cuong Sai Gon Company Ltd (QCSG) through its unit CVH Sparkle Ltd, for a cash consideration of VND121.2 billion (S$7.3 million).
QCSG owns approximately 9,000 sq m of land in Binh Chanh District, Ho Chi Minh City in Vietnam. It plans to develop the site into 800 value homes and CapitaValue Homes will lead the development.
This will be CapitaValue Homes’ fourth value homes project, bringing its portfolio to more than 4,200 value homes across Asia.
“Given the rapid urbanisation and rising home prices in the major cities in Vietnam, our value homes will be timely to meet the housing needs of the mass market homebuyers who are seeking for good value homes,” said Mr. Chen Lian Pang, Chief Executive of CapitaValue Homes Limited.
“We will build homes that are value for money and at the same time, cater to the essential needs and affordability of the Professionals, Managers, Executives and Technicians (PMETs) who aspire to live in a vibrant living community that enjoys basic communal facilities as well as good transportation connectivity and proximity to the city centres.”
The total development cost of the project is approximately VND906 billion (S$54.9 million).
Located in Binh Chanh District, the land site is 10 kilometres away from Ho Chi Minh City’s Central Business District (CBD). It enjoys direct access to Nguyen Van Linh Boulevard and to the newly urbanised District 7.
The consideration was reached on a willing-buyer willing-seller basis, taking into account, among other factors, the net asset value of the stake of VND121.2 billion (S$7.3 million) based on the management accounts, as of 30 May 2011.
“We are pleased to partner CapitaLand, one of Asia’s largest real estate companies, and be part of this long-term endeavor which will bring in significant value for customers without compromising quality,” said Madam Nguyen Thi Nhu Loan, Chairwoman and General Director of Quoc Cuong Gia Lai JSC.
“With CapitaLand’s extensive experience and excellent international track record in real estate development, project management and real estate financial services, we are certain that our first partnership will meet the needs of the mass market homebuyers whose priority is to purchase a home that has both value and functionality.”
The project is also CapitaLand’s third value homes development and seventh residential development in Vietnam. CapitaLand has a residential portfolio of over 6,400 units across seven residential developments in Ho Chi Minh City and Hanoi.
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