News Release Cvh Khang Dien


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Press release about our new Joint Venture for 2nd Value home project in Vietnam

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News Release Cvh Khang Dien

  1. 1. For Immediate Release 10 May 2011NEWS RELEASE CapitaValue Homes to develop its third value housing project CapitaLand’s sixth residential development in VietnamSingapore, 10 May 2011 – CapitaValue Homes Limited, a wholly-owned subsidiary of CapitaLandLimited, has through a subsidiary, signed a Joint Venture Agreement with Khang Dien Sai Gon RealEstate JSC, a subsidiary of Khang Dien House Trading and Investment JSC (“Khang Dien”), to jointlydevelop 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 totalproject development cost is estimated to be US$70 million (approximately S$88 million). Theincorporation of the joint venture company between CapitaValue Homes and Khang Dien is subject tothe approval of the Vietnamese authorities. The joint venture is conditional on and subject to thefulfillment of several conditions precedent. Upon obtaining the necessary approvals and thesatisfaction 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 thejoint 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 CentralBusiness District. The site sits close to the future Ho Chi Minh - Long Thanh Highway and is withinclose proximity to the Saigon Sports City and Saigon Golf Mixed-use Development projects. Theproject is CapitaValue Homes’ third value housing development in Asia, bringing its pipeline of valuehomes to more than 3,500 units in Asia. CapitaValue Homes’ two other value homes projects arelocated in District 9, Ho Chi Minh City, Vietnam and Wuhan, Hubei Province, China. The project isalso CapitaLand’s sixth residential development in Vietnam. Overall in Vietnam, CapitaLand has aresidential 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 CapitaLandGroup’s established network and development platform in China and Vietnam, CapitaValue Homes isa new strategic business unit set up to capitalise on the untapped demand for good value homes inAsia. To further accelerate our expansion into value housing segment, we have acquired 40% stake inSurbana to leverage on its expertise in the development of mass market housing. We are on track forexpansion into value housing segment and to build 10,000 to 15,000 value homes in China andVietnam annually over the next three to five years.”Mr Chen Lian Pang, CEO of CapitaValue Homes Limited, said: “We envisage each of our valuehousing development to be a vibrant living community sought after by young executives, first-timehomebuyers and home upgraders to set up their homes. To ensure value for money and costefficiency, CapitaValue Homes will adopt standardised designs using industrialised constructionmethod. Our value homes will also feature basic functional facilities that best suit the needs ofProfessionals, 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 asother basic amenities within the development.” 1
  2. 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. WithCapitaLand’s international experience and excellent track record in real estate development, projectmanagement and real estate financial services, we are confident that our first collaboration in Ho ChiMinh City will meet the needs of the mass market homebuyers who have the highest fundamentaldemand for housing.”Tapping on growing demand for value housing in AsiaIn Asia, the rapid pace of urbanisation and the rising middle class, coupled with escalating homeprices have created a growth potential in the value housing segment. CapitaValue Homes is a newstrategic business unit set up in October 2010 to capitalise on the growing demand for value housingin Asia.With an initial focus in China and Vietnam, CapitaValue Homes will build good value homes targetedat mass market homebuyers. This segment comprises the first-time homebuyers, home upgradersand young executives whose mortgage repayment is pegged at no more than 40% of their averagehousehold income level.CapitaValue Homes will build value homes located within 60 minutes of travelling time from the citycentre and supported by good transportation connectivity. At an average size of about 60 to 90 squaremetres, each unit will feature functional and standardised design with basic finishes. Residents willalso be able to enjoy good landscaping and communal facilities like playgrounds and centres forcommunity activities.Location Map of site at District 2, Ho Chi Minh City, Vietnam 2
  3. 3. About CapitaLand in VietnamVietnam is CapitaLand’s fourth pillar of growth in addition to its core markets of China, Singapore andAustralia. The real estate market in Vietnam is supported by the country’s strong economic growthcoupled with rapid urbanisation and its young and hardworking population. CapitaLand is committedto being a long-term real estate player in Vietnam.Currently, the Groups presence in Vietnam is in Ho Chi Minh City, Hanoi, Hai Phong and Danang, inthe residential and serviced residence sectors. In the residential sector, the Group has a portfolio ofover 5,500 units in Ho Chi Minh City and Hanoi, comprising four prime residential developments andtwo value housing developments.Its wholly-owned serviced residence business unit, The Ascott Limited, has over 1,300 apartmentunits in nine properties across the four major cities, making it the largest international servicedresidence owner-operator in Vietnam. - End -About Khang Dien House Trading and Investment JSCKhang Dien House Trading and Investment JSC was established in December 2001 with a totalchartered capital of VND 32 billion. The company was privatised and converted to joint stock companyin 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 wasVND 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 severalprojects including Topia garden with 255 villas & townhouses on 6ha land, the 10.4ha Khang DienPhuoc Long B in 2005 and the River Town project with 197 villas and townhouses on 7.1ha land. Thecompany owns a good pipeline of 17 projects, strategically in District 2 and District 9, with a total landarea of about 100 hectare.About CapitaLand Group ( is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, themulti-local companys core businesses in real estate, hospitality and real estate financial services arefocused in growth cities in Asia Pacific and Europe.The companys 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. ,CapitaLand also leverages on its significant asset base, real estate domain knowledge, financial skillsand extensive market network to develop real estate financial products and services in Singapore andthe region.The listed entities of the CapitaLand Group include Australand, CapitaMalls Asia, CapitaMall Trust,CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, CapitaMalls MalaysiaTrust and Quill Capita Trust. 3
  4. 4. _________________________________________________________________________Issued by: CapitaLand Limited (Co. Regn.: 198900036N)Date: 10 May 2011Analyst Contact Media ContactsSingapore SingaporeHarold Woo Alicia NeoInvestor Relations Corporate CommunicationsDID: (65) 6823 3210 Mobile: (65) 8200 0022Email: Email: Vietnam Duong Thuy PHUONG KHANH PR & Communications Mobile: 0917.54.69.78 DID: (84-8) 3910 6182 Ext 327 Email: 4