Exclusive: Singapore-based CapitaLand is in talks to buy a property in Vietnam from Vinhomes.

Asian real estate giant CapitaLand Group is in talks to buy about $1.5 billion worth of assets from Vietnam's largest company Vinhomes JSC (VHM.HM), two sources told Reuters. A deal of this magnitude would be one of the biggest real estate deals in Southeast Asia in the past few years.

Negotiations between CapitaLand, owned overwhelmingly by Singapore's state investor Temasek Holdings, and Vinhomes, which has a market value of $8 billion, have taken place on some projects owned by Vinhomes, four sources told Reuters.

Vinhomes, Vietnam's largest real estatedeveloper by market capitalization, is part of Vingroup (VIC.HM), the country's largest conglomerate. A source said CapitaLand is considering buying part of Vinhomes' Ocean Park 3 project, a 294-hectare resort town near the Vietnamese capital Hanoi, or another project in Hai Phong city in the north of the country.

The value of the deal is still under discussion, the source added, noting that negotiations have reached the final stage. The sources did not make their names public due to the sensitivity of the matter.

When reporters contacted CapitaLand Development, the company declined to comment directly on the potential agreement with Vinhomes, but said: "Vietnam is one of CapitaLand Development's key markets. We are constantly looking at investment opportunities to expand our presence in the country. "

CapitaLand Development, part of the CapitaLand Group, which is present in 40 countries, is engaged in the development of retail, office, residential, business park and data centers, among other businesses.

Vingroup declined to comment on any talks with CapitaLand, but said that as a publicly traded company, it would disclose information if deals were made. Vingroup is in the real estate, auto and retail business, investing billions of dollars to develop VinFast (VFS.O), its new electric car maker.

Vinhomes develops and owns residential and commercial real estate in Vietnam, a country of 100 million people that last year was Asia's fastest-growing economy. The economy grew by 8%, the fastest pace in 25 years, driven by strong retail sales and exports, but is under pressure from slow global growth.

The real estate market crisis that began last year due to problems at No Va Land (NVL.HM), one of the country's largest real estate groups, has severely damaged investor confidence as authorities arrested high-ranking officials and introduced bond reforms. Vinhomes was spun off and listed on the local stock exchange in 2018.

Vinhomes' net profit in 2022 fell 26 percent to VND29 trillion ($1.23 billion) from the previous year, while total revenue fell 27 percent to VND62 trillion. Vinhomes shares have lost 10% since the start of the year, after falling 40% in 2022 as the real estate market crisis deepens. ($1 = S$1.3489) ($1 = VND23,580)