CapitaLand strengthens residential presence in Vietnam.

CapitaLand strengthens residential presence in Vietnam.Capitaland announced its plans to develop a fourth residential site in Ho ChiMinh City (HCMC) in partnership with Azure City Co (Azure). CapitaLand’sequity interest will be 75% amounting to US$32.25m (S$48.8m) and Azureholding the remaining 25% stake. Capitaland plans to build 1200 luxurious highrise apartments and a retail component over the next three to four years. Thefirst phase of the project is expected to launch in 4Q08.Vietnam offers an attractive business environment due to the improvedframework and transparency, tax incentives and more recently its WTO entryprovides greater market access. The average GDP growth rate for Vietnam hasbeen 7.8% pa over the last five years with 2007 GDP target of 8.5%. HCMC iscurrently experiencing a property boom supported by the rising affluence amonglocals, increasing affordability levels and their preference to invest in real estateas against other investment vehicles. The move by CapitaLand is in line withtheir expansion and diversification strategy by setting strong presence in theAsia’s growth cities and benefit from the property upcycle in that region.