Keppel Land has signed a joint venture agreement with its Vietnamese partner Tien Phuoc to develop an 11-hectare waterfront residential site for 175 villas fronting the Saigon river in Ho Chi Minh City.
The signing was witnessed by Prime Minister Lee Hsien Loong and Vietnamese Prime Minister Nguyen Tan Dung.
This is the third project that Keppel Land and Tien Phuoc are working on together. The other two projects are a condominium and a waterfront residential township in District 2.
To date, Keppel 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.
Keppel Land’s Group CEO, Kevin Wong, believes that the acquisition will further enhance their reputation as a choice developer of high-end landed homes in Vietnam.
Keppel Land will take up a 60 per cent stake amounting to S$22.7 million in the joint venture, which has a total registered capital of S$37.8 million. Tien Phuoc will take the remaining 40 per cent stake.
The transaction is not expected to have an impact on earnings per share of Keppel Land for the current financial year.
Source : Channel NewsAsia – 12 Jan 2010