Developer Keppel Land said yesterday it has entered into a US$146 million joint venture with a Vietnamese real estate company to develop a luxury cond

Developer Keppel Land said yesterday it has entered into a US$146 million joint venture with a Vietnamese real estate company to develop a luxury condominium on an 8.5 ha site fronting the Ca Cam River in Ho Chi Minh City.

The project is the third residential development KepLand has announced in Vietnam and Ho Chi Minh City this year.

After investment and government approvals have been obtained, KepLand will take a 75 per cent - amounting to US$33 million - of the JV company’s total registered capital of US$44 million. Vietnamese partner Tan Truong will hold the other 25 per cent.

The project will feature about 2,400 waterfront apartments on potential gross floor area of about 408,500 sq m, KepLand said. Construction is expected to start as soon as planning approval is granted, and the first phase is expected to be launched in 2008. The site, which enjoys 500 metres of river frontage, is 6.5 km away from Ho Chi Minh City’s central business district in a location is popular with the upper income locals and the expatriate community, KepLand said.

This latest JV forms two other recent partnerships formed by KepLand to develop prime residential sites in Ho Chi Minh City - The Estella, a 4.8 ha site in An Phu Ward and a 1.7 ha waterfront project fronting the Saigon River in Binh Thanh District. The company also recently said it has fully sold Villa Riviera, an exclusive 101-unit waterfront villa development.

‘Demand for quality homes in Vietnam is sustained by rising affluence among locals and further liberalisation of land laws,’ said Ang Wee Gee, KepLand’s director of regional investments. ‘We are confident that our development, with its premium quality and prime waterfront location, will be positively received by the upper-income market.’

Mr Ang added that KepLand continues to be on the lookout for select sites in Vietnam to develop products which will set the benchmark in the country.

The transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of KepLand for the financial year ending Dec 31, 2007, the company said.

KepLand’s shares fell 15 cents to close at $9.05 yesterday. The stock has climbed 31.2 per cent since the start of the year.

Source: The Business Times, 14 June 2007