PETALING JAYA: Gamuda Bhd’s property arm, Gamuda Land Sdn Bhd, is acquiring a 100% stake in Tam Luc Real Estate Corporation for 7.2 trillion Vietnamese dong (RM1.47 billion) as part of its expansion plan in Vietnam.

Tam Luc Real Estate’s jewel in the crown is its 3.7-hectare (9.1 acres) project land in Tam Luc City, which has been gazetted as the Innovation Hub of Ho Chi Minh City.

In a filing with Bursa Malaysia today, Gamuda said the project land is a shovel-ready mixed-use high-rise project site with all the requisite planning approvals obtained that is ready for immediate development.

Gamuda Land plans to develop 1,968 exclusive apartments, 12 penthouses, 51 podium shops and 21 shophouse units across six towers of up to 40 levels, to be fully developed and sold within five years.

With a gross development value (GDV) of RM5.1 billion for the project, the proposed acquisition is set to contribute to the earnings of the group over the next five years.

This project will enable Gamuda Land to continue its strong trajectory of profitable growth in Vietnam, said Gamuda.

“The proposed acquisition is in line with Gamuda Land’s emphasis on international projects in its portfolio, which accounted for two-thirds of its property sales in financial year 2022.

“This strategy has seen the group through the challenging economic outlook of recent quarters, providing stable lines of revenue amid weaker sentiment and currency fluctuations in the domestic market,” it added.

Gamuda Land’s wholly-owned foreign sub-subsidiaries, namely Van Lam Investment Ltd Company, Truong Tin Construction and Housing Trading Company Ltd and Gamuda Land Nam Viet Investment Company Ltd have entered into a share transfer agreement with the vendors Nguyen Hong Giang, Nguyen Van Viet and Dang Thi Dung, who collectively own the company.

The acquisition will be funded via internally generated funds (42%) and borrowings (58%).

Gamuda Land currently has four projects in Vietnam, namely Gamuda City in Hanoi, Celadon City and Elysian in Ho Chi Minh City as well as Artisan Park in Binh Duong, outside of Ho Chi Minh City.