Keppel Land secures two prime sites for villa development in Ho Chi Minh City
Singapore's Prime Minister Lee Hsien Loong and Vietnam's Prime Minister Nguyen Tan Dung witnessed the signing ceremony of JV agreements held in Hanoi
Building on its position as one of Vietnam's pioneer and leading foreign developers, Keppel Land Limited (Keppel Land) has entered into joint ventures (JV) with well-known local property developers, Tien Phuoc Company Limited (Tien Phuoc) and Hung Phu Real Estate Corporation (Hung Phu), to develop two prime sites in Ho Chi Minh City (HCMC), Vietnam.
The JV agreements were signed between Mr Kevin Wong, Group CEO of Keppel Land, Mr Nguyen Thanh Lap, Chairman of Tien Phuoc and Mr Nguyen Anh Khiem, Chairman of Hung Phu in the presence of Singapore's Prime Minister Lee Hsien Loong and Vietnam's Prime Minister Nguyen Tan Dung held at the Office of the Government in Hanoi today.
The first agreement seals the collaboration between Keppel Land, through wholly-owned subsidiary, Antiaris Pte. Ltd. (Antiaris), and Tien Phuoc for the development of a 13.5-ha waterfront site in HCMC.
Comprising 225 villas, the gated development with 24-hour security will feature recreational facilities such as a club house, a gymnasium, a swimming pool, a tennis court and a children's playground.
This will be Keppel Land's fourth partnership with Tien Phuoc. Both Antiaris and Tien Phuoc will take equal stakes of the total development cost (TDC) of about US$115 million.
The second agreement between Keppel Land, through Belwynn Pte. Ltd. (Belwynn), and Hung Phu is for the development of a 9.8-ha site into a gated villa development along Rach Chiec River.
The proposed development, located just 500 metres from Riviera Cove, Keppel Land's second deluxe villa residential development in HCMC, is envisioned to provide about 150 premier homes.
Under the arrangement, Belwynn will take up 60% stake of the US$65 million TDC while Hung Phu will subscribe for the remaining interest. This is Keppel Land's second collaboration with Hung Phu.
Upon the issuance of the investment certificates and relevant government approvals, both villa developments are expected to launch their first phases in fourth quarter of 2011.
Mr Kevin Wong said, "The sell-out success of Keppel Land's first residential development in Ho Chi Minh City, Villa Riviera, as well as the strong response to Riviera Cove, which is almost sold out, demonstrate that prime villa developments are highly sought after.
"Keppel Land will continue to leverage our strong relationships and track record in delivering quality homes offering integrated lifestyle concept to further build up its reputation of being the choice developer in Vietnam."
These new villa developments, targeted at the upper-middle to high-income segment, will be Keppel Land's fourth and fifth landed waterfront properties in HCMC. The first, Villa Riviera, located in District 2, saw all 101 units sold within a year of its launch in 2006. More than 90% of the 88 launched units at the 96-villa Riviera Cove has also been taken up. The third waterfront villa development, which was secured early this year, will commence sales in 2011.
The above transactions are not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Group for the financial year ending 31 December 2010.
About Keppel Land Limited (Keppel Land)
With its first mover advantage, Keppel Land was named the Best Developer in Vietnam by Euromoney, a leading global financial magazine. One of the largest real estate investors in Vietnam, Keppel Land has 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.
This includes International Centre and Sedona Suites Royal Park in Hanoi, and PetroVietnam Towers in Vung Tau. In HCMC, Keppel Land is currently developing Riviera Point, a 2,400 unit waterfront integrated lifestyle development with both residential and retail facilities in District 7, and The Estella, a prime 1,393-unit condominium development in District 2. It has plans to expand beyond the current Saigon Centre to create an iconic architectural landmark comprising premier office buildings, serviced apartments and retail components.
To-date, the Company has a pipeline of more than 22,500 homes, two office buildings and serviced apartments in Vietnam.
About Tien Phuoc Co. Ltd. (Tien Phuoc)
Established in 1992, Tien Phuoc is one of the most reputable real estate investors and developers in Vietnam. Tien Phuoc has proven its success through numerous projects in the region including Greenfield Village, a gated villa development in the prime residential An Phu Ward in District 2, The Estella, an exclusive 4.8 ha condominium development jointly developed with Keppel Land, and South Rach Chiec, a 30 ha mixed-use residential and commercial development in District 2, also jointly developed with Keppel Land.
About Hung Phu Real Estate Corporation (Hung Phu)
With a strong and proven track record in Vietnam, Hung Phu has a solid reputation for the quality of its developments and projects. Since 2001, Hung Phu has gained the trust of its customers as one of the most reputable real estate developers in Vietnam.