Keppel buys additional 16% stake in Viet property

The purchase is worth around $53.5m.

Keppel Land, through its subsidiary Krystal Investments Pte Ltd, has acquired from its Vietnamese partner, Southern Waterborne Transport Corporation, an additional 16% stake in Keppel Land WATCO I to V, the joint venture (JV) entities for Saigon Centre in Ho Chi Minh City, Vietnam.

The consideration for the purchase is VN$845.9b (approximately S$53.5m).

Following the acquisition, Keppel Land has increased its aggregate interest in the JV companies for Saigon Centre Phases One and Two (Keppel Land WATCO I, II, and III) from approximately 45.3% to 53.5%, and its aggregate interest in the JV companies for subsequent phases of Saigon Centre (Keppel Land WATCO IV and V) from 68% to 76.2%.

To be developed in several phases, Saigon Centre is located on a two-hectare prime site in the heart of the central business district in District 1. It is also within walking distance to two planned underground subway stations located at the Ben Thanh Market and the Opera House.

The Saigon Centre retail mall, part of the Phase Two development, was opened on 1 August 2016, with Takashimaya Department Store as its anchor tenant. The retail mall has received close to six million visitors since its opening.

Phase Two of Saigon Centre, designed by the internationally renowned New York-based architect NBBJ, will comprise 55,000 sqm of prime retail space, 44,000 sqm of premium Grade A office space, as well as 195 luxury serviced apartments when fully completed in end-2017.

Phase One of Saigon Centre, which was completed in 1996, comprises a 25-storey office tower which is 100% leased to the diplomatic corps, multinational companies, as well as banking and financial institutions. Tenants include DBS Bank, AIG, Reuters, and Mitsubishi Corporation.