Keppel Land, Vietnamese developer to build residences in Ho Chi Minh City

KEPPEL Land, through its wholly-owned subsidiary Monestine, is partnering Vietnamese developer Phu Long Real Estate Corporation to develop residences in Ho Chi Minh City, expected to cost over VND7,400 billion (S$425 million).

According to an exchange filing on Thursday, Monestine has entered a conditional share purchase agreement with Phu Long to acquire a 60 per cent interest in three land parcels for VND1,304 billion.

The land parcels span 6.2 hectares in the Nha Be district in Saigon South and are situated within 400 metres of each other. 

The partners plan to develop a total of about 2,400 premium apartments - with ancillary shophouses that will offer around 14,650 square metres of commercial space - on the sites. The total development cost for the project, inclusive of land cost, is expected to be in excess of VND7,400 billion, said Keppel Land.

The project will be developed in three phases. The first phase, involving the development of about 910 apartments and some shophouses, will commence in the first quarter of 2020, after the relevant approvals have been obtained.

Keppel Land has a portfolio of properties in Vietnam, one of its key markets in Asia, including Grade A offices, residential properties, retail centres, integrated townships and serviced apartments. 

Linson Lim, president (Vietnam) at Keppel Land, said: "We are confident that our residential developments will be well-received by discerning homebuyers seeking well-located and high-quality homes in the Southern corridor of Ho Chi Minh City. This acquisition will add to Keppel Land's pipeline of about 20,000 homes and quality commercial portfolio in Vietnam."

Keppel Land is the property arm of Keppel Corporation.

Keppel Corp closed up 1.38 per cent at S$6.62 on Thursday before the announcement.