As Vietnam’s leading foreign property developer, Keppel Land continues to build on its portfolio of quality developments with a new site in Ho Chi Minh City (HCMC).
Through wholly-owned subsidiary, Corredance Pte Ltd. (Corredance), Keppel Land has signed the joint venture (JV) with Hong Quang Co. Ltd. (Hong Quang) to develop waterfront residences on a 5.1-ha (51,043 sm) site in District 2 of HCMC.
The development marks Keppel Land’s fifth new residential project in Vietnam this year and adds to its portfolio of more than 20,000 homes in the country.
Mr Ang Wee Gee, Director, Regional Investments of Keppel Land said, “Keppel Land’s hallmark quality and the prime locations of our properties have been positively received by local homebuyers, who are eagerly anticipating our launches.
“Following the sell-out success of Villa Riviera, we are confident that our residential developments, including this latest property, will be timely to meet the strong pent-up demand for middle to high-end residences in Vietnam.
“Like our other developments, the site is strategically located. It enjoys great accessibility to the city centre via the proposed East-West Highway and Saigon River Tunnel, both of which are scheduled for completion in 2009.
“We will continue to be on the look-out for more prime residential sites in Vietnam to ride on the market upswing and to further capitalise on our strong reputation as a choice developer.”
The site is expected to yield a potential gross floor area of 244,800 sm which will include about 1,500 quality apartments. The sales launch of the first phase is slated for early 2009.
The proposed development is close to the 737-ha Thu Thiem New Township (Thu Thiem), which has been earmarked as the new downtown to complement HCMC’s Central Business District (CBD).
Residents there can look forward to a quality lifestyle enhanced by a comprehensive range of recreational facilities including a clubhouse, a swimming pool and tennis courts in lush surrounds and under 24-hour security.
The total investment capital for the project, which will be developed in phases according to market demand, is estimated at US$136 million (approximately S$208 million).
Upon the issuance of the investment certificate and obtaining the relevant government approvals, Corredance will take up 60% stake amounting to US$24.6 million (approximately S$37.6 million) of the total registered capital of US$41 million (approximately S$62.7 million) in the JV company while local property developer, Hong Quang, will subscribe for the remaining interest.
In August 2007, Keppel Land was awarded the investment licence for The Estella, a prime residential project comprising 1,600 upmarket apartments in the popular An Phu Ward, District 2, Ho Chi Minh City, by the Ho Chi Minh City People’s Committee. The soft launch of The Estella is slated for 4Q 2007.
The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of KLL for the financial year ending 31 December 2007.
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