SINGAPORE (EDGEPROP) - Keppel Land is acquiring a 60% interest in Phuoc Kien Construction Investment from Vietnamese developer Phu Long Real Estate for VND367.5 billion ($21.6 million). (See: Keppel Land enters into serviced co-offices partnership with SBF)
Post-completion, Phu Long will hold the remaining 40% interest in the company, which owns a plot of land located at Nha Be District, Ho Chi Minh City (HCMC) for which land use right certificates have been issued.
Keppel Land and Phu Long plan to jointly develop approximately 40 landed homes on the 1.5-hectare site, which is located adjacent to the existing Celesta residential project which Keppel Land and Phu Long are currently jointly developing. The site is situated along the vibrant Nguyen Huu Tho arterial thoroughfare, which connects Saigon South to HCMC’s CBD.
The site is near many amenities, including reputable healthcare facilities such as FV Hospital and Tam Duc Heart Hospital, as well as leading educational institutions such as the Royal Melbourne Institute of Technology (RMIT) University Vietnam, the American International School, the British Vietnamese International School and Saigon South International School. In addition, lifestyle and entertainment offerings that are available nearby include SC VivoCity and Crescent Mall.
The total development cost for the project, inclusive of land cost, is expected to be in excess of VND800 billion (approximately $47.1 million).
To that end, Keppel Land has also entered into a shareholders' agreement with Phu Long in relation to their respective shareholding in Phuoc Kien and the joint development of the project
The completion of the acquisition, subject to the satisfaction of conditions precedent, is expected to take place by June.
The transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation for the current financial year.
Joseph Low, president (Vietnam) at Keppel Land, says the company is excited to strengthen its strategic partnership with Phu Long. “We believe that there will be strong demand for these landed homes, given their strategic location, excellent connectivity and proximity to many public amenities,” he says.
Shares in Keppel Corporation closed up 4 cents or 0.75% higher at $5.36 on May 28.