Gamuda acquires land in Vietnam worth US$53m

by ANIS HAZIM / graphic by MZUKRI MOHAMAD 

GAMUDA Bhd has acquired a 13.8 acres (5.6 hectares) residential plot of land in Binh Duong New City in Vietnam for US$53.88 million (RM228.5 million) as part of its expansion plan in the country.

In filing to the local bourse today, Gamuda said its wholly-owned foreign sub-subsidiary in Vietnam, Gamuda Land HCMC Joint Stock Company (GL HCMC JSC) continued its strong growth trajectory in Vietnam with the strategic Binh Duong acquisition on Oct 15, 2021.

“The UG5.6 land is part of a 2,600-acre integrated township set to be the administrative centre of the nation’s affluent Binh Duong province in Vietnam,” Gamuda said.

The purchase will be funded by internally generated funds.

Gamuda has planned to build 349 units of landed properties targeted at the local market through the acquisition.

It also remains committed to deepening its presence in the Vietnamese market, which presents an attractive proposition to international developers thanks to strong fundamentals.

“These include consistent gross domestic product (GDP) growth of 6% to 7% in recent years, a population of more than 104 million by 2030, high yields for property investments and relatively affordable land prices, as well as the introduction of conducive foreign ownership regulations in 2015,” it stated.

Gamuda said that the Binh Duong acquisition is expected to be completed by the third quarter of 2022 (3Q22).