KUALA LUMPUR: Gamuda Bhd is buying a 60% stake in Vietnam's Tan Thang Company for US$82.8 million (RM275.14 million) which has rights to undertake a property project in Ho Chi Minh City with an estimated gross development value (GDV) of RM6 billion.

It said on Wednesday, March 10 its unit, Gamuda Land (HCMC) Sdn Bhd was buying the stake from Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal).

Gamuda said Tan Thang Co has the rights to undertake a project on a 825,216.5 sq m site in Son Ky Ward, Tan Phu District, Ho Chi Minh City.

"Tan Thang Company will undertake the Project comprising medium-end and premium residential apartments, a sports complex and an educational complex on the land. The project is expected to generate a GDV of RM6 billion," it said.

Gamuda said the first sales launch is expected to commence in the second half of this year and over a seven-year period.

Under the agreement, Gamuda would loan US$66.24 million to Tan Thang Co at 13% per annum. The loan shall be repaid to Sacomreal once Tan Thang Co has secured and drawndown from the project’s lender.

Gamuda HCMC will fund its share of equity participation in Tan Thang Co via shareholder’s advance from Gamuda using internally generated funds and/or bank borrowings.

"The project will enable Gamuda to strengthen its position in the property development industry in Vietnam," it said.