Residential and retail investment and development firm JSM Indochina (AIM: JSM) has agreed to acquire a further high rise residential site in Thao Dien, which it said was the “Belgravia” of Vietnam’s Ho Chi Minh City to add to its existing 600 residential apartments in the area.
Construction began in February this year and the 180 “ultra luxury” properties will be available for occupancy from mid 2011 and will be up for lease or for sale. These will include 176 apartments with three bedrooms ranging in size from 145 sq m (square metres) to 201 sq m along with 4 penthouse apartments, ranging in size from 395 sq m to 516 sq m. The complex will comprise three towers consisting of 90 apartment units, adjacent parking and other amenities such as pool, spa, gym, tennis court and community rooms.
The construction company which sold the project to JSM will complete the construction and own one of the three towers with JSM taking a hold of the other two. The company agreed to pay an “extremely competitive price” of US$32.5 million per tower, making for a total cost of US$65 million, half of which ill be paid in cash and half in construction financing.
JSM made it clear it was not done growing its presence in what it said was a fast growing property market.
“We look forward to announcing several more investments over the coming months as we progress through to the final stages of negotiation with sellers and potential partners,” said Chief Executive of JSM Craig Jones.
The seller will pledge the land use right of the project to a bank where JSM will look to obtain construction financing.
JSM acquired the Prince and Princess properties in Thao Dien for a combined US$26 million last month to combine them into a single entity with its US$10 million Peninsula property, also located in Thao Dien, to develop them as luxury apartments for either sale or lease.