Singapore-listed Keppel Land is making its first foray into Sri Lanka with the signing of a conditional joint venture agreement with CT Properties, a leading property developer in Sri Lanka.
The joint venture will develop a luxury condominium project with about 260 residential units in the affluent Kotahena district in Colombo, the commercial capital of Sri Lanka.
In a statement released on Friday, Keppel Land said it will hold a 60 per cent interest in the joint venture company, with CT properties taking up the other 40 per cent stake.
The total development cost for the project is estimated to be around S$70 million.
Keppel Land said its move into the Sri Lanka market is strategic and timely given the country’s growth and rising affluence amongst its population.
Kevin Wong, Group CEO of Keppel Land, said, “The improved political and economic conditions also bode well for the country as it looks to attract more foreign direct investments. Sri Lanka is experiencing rapid growth and the sound fundamentals are expected to drive demand for homes.”
Keppel Land said its participation in the proposed development is subject to various conditions and regulatory approvals by relevant authorities.
It added that the 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 current financial year.