Keppel Land inks JVA for new waterfront site in Ho Chi Minh City
Sealing of agreement held in Hanoi witnessed by Singapore's Prime Minister Lee Hsien Loong and Vietnam's Prime Minister Nguyen Tan Dung
Keppel Land Limited (Keppel Land), through its wholly-owned subsidiary, KLL Strategic Holdings Pte Ltd (KLLSH), today signed a joint venture agreement (JVA) with Vietnamese partner Tien Phuoc Co., Ltd (Tien Phuoc) to develop a 11-ha waterfront residential site for 175 villas fronting the Saigon River in Ho Chi Minh City (HCMC).
Witnessed by Singapore's Prime Minister Lee Hsien Loong and Vietnam's Prime Minister Nguyen Tan Dung in a ceremony held in Hanoi, the JVA was signed by Mr Kevin Wong, Group CEO of Keppel Land and Mr Nguyen Thanh Lap, Chairman of Tien Phuoc.
This is the third project between Keppel Land and Tien Phuoc, a reflection of their strong and deepening relationship. The two other projects are located in District 2 - The Estella, a prime 1,393-unit condominium development and a 30-ha waterfront residential township (developed together with another Vietnamese partner, Tran Thai Co., Ltd).
Keppel Land is one of Vietnam's pioneer and leading foreign property developers, with a quality portfolio of properties in Hanoi, HCMC, Dong Nai and Vung Tau ranging from Grade A offices, residential properties, integrated townships to award-winning serviced apartments.
To-date, the Company has a pipeline of more than 20,000 homes, two office buildings and serviced apartments in Vietnam with a total investment capital of almost US$4.7 billion.
Mr Kevin Wong, Group CEO of Keppel Land, said, "As a pioneer foreign developer in Vietnam, Keppel Land has introduced and set standards in sustainable developments with desirable live-work-play environments. We target to achieve a minimum of Singapore's Building and Construction Authority's (BCA) Green Mark Gold Standard in our developments.
"The acquisition will leverage on the strengths of the partnership and present an excellent opportunity for Keppel Land to further enhance our reputation as a choice developer of high-end landed homes in Vietnam."
Upon the issuance of investment certificate and relevant government approvals, KLLSH will take up 60% stake amounting to US$16.2 million (approximately S$22.7 million) of the total registered capital of US$27.0 million (approximately S$37.8 million) in the JV company while Tien Phuoc will subscribe for the remaining interest.
The villa development is also Keppel Land's third landed waterfront property in HCMC. The first, Villa Riviera, located in District 2, saw all 101 units sold within a year of its launch in 2006.
Riviera Cove, the second villa project comprising a total of 96 villas in District 9, was recently launched to positive response. About 80% of 60 select villas at Riviera Cove was taken up within a month of its launch in mid-November 2009.
The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land for the financial year ending 31 December 2010.
About Keppel Land Limited (Keppel Land)
With its first mover advantage, Keppel Land is one of the largest real estate investors in Vietnam, with a quality portfolio of properties comprising prime office developments and residential properties, as well as award-winning serviced apartments.
This includes International Centre and Sedona Suites Royal Park in Hanoi, and PetroVietnam Towers in Vung Tau. In HCMC, Keppel Land is currently developing The Estella, a prime 1,393-unit condominium development in District 2, and Saigon Centre, poised to be an iconic architectural landmark comprising premier office buildings, serviced apartments and retail components.
About Tien Phuoc Co. Ltd. (Tien Phuoc)
Tien Phuoc Company Limited has been recognised as one of the most reputable real estate investors and developers in Vietnam. Established in 1992, Tien Phuoc has proven its success through numerous projects in the region including a 30-ha waterfront township in South Rach Chiec, Greenfield Village; Tien Phuoc - South Saigon Residential Complex; Le Meridien Saigon Tower (a hotel cum office mixed-use development); The Estella; Cam Ranh Bay Resort and Spa; and Tien Phuoc Building.