CapitaLand Limited - OCBC Securities 2015-09-16: Expands presence in Vietnam.

CAPITALAND LIMITED C31.SI 

CapitaLand Limited: Expands presence in Vietnam 

  • The group has entered into a JV with Thien Duc Trading Construction Co Ltd (Thien Duc) to develop a prime site in District 2, Ho Chi Minh City, Vietnam. 
  • CAPL will hold an 80% stake in the JV and the project value of the upscale residential development is estimated to be US$150m (S$211m). The 2.0ha site is located at the fringe of the city centre and is 10 mins away from the future CBD in Thu Thiem peninsula. It is also close to key transportation links including Long Thanh-Dau Giay Highway, East-West Highway and Hanoi Highway. 
  • We are overall positive on this development and note that the group’s projects in Vietnam have seen decent sell-through to date. The Vista is 92% sold as at end Jun15, and the group sold 389 homes (~US$68m) in Vietnam in 1H15. 
  • This will be CAPL’s seventh residential project in Vietnam and will increase the group’s residential portfolio in Ho Chi Minh City and Hanoi to over 7.5k units. As at end 2Q15, the group’s total asset exposure to Vietnam is S$618m. 
  • Maintain BUY with an unchanged fair value estimate of S$4.07. 


Eli Lee | http://www.ocbcresearch.com/ OCBC Securities 2015-09-16
BUY Maintain BUY 4.07 Same 4.07


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