TEE signs JVA to develop luxury villas in Vietnam

The real estate firm is partnering with Khang Viet Co. Ltd to develop 37 luxury villas on a 6,028 square metre piece of land in District 9, HoChi Minh, Vietnam.

The total project investment is valued at S$8.5 million and is scheduled for launch in second quarter of 2011.

In a statement, TEE disclosed that it holds a 65% stake while Khang Viet holds the remaining 35% stake in the new joint venture company. TEE will also be making a capital contribution of S$3.8 million for joint venture.

Beyond the luxury villa development, TEE and Khang Viet targets to jointly develop between 500 to 1,000 residential units in Ho Chi Minh City over the next 5 years.

C. K. Phua, Group Chief Executive of TEE International Limited said, “We are pleased to achieve this maiden entry into Ho Chi Minh City’s bustling real estate market. We believe the time is ripe for us to meet the lifestyle aspiration of the growing middle class who can afford and wish to enjoy high quality residential development.”

In Singapore, TEE is in the midst of developing and completing projects such as Cantiz@Rambai, Dunsfold Drive as well as two major developments in desired locations in Cairnhill and Killiney Road, near the heart of Singapore’s main commercial belt.

The aforementioned joint venture is not expected to have a material impact on the net tangible asset and earnings per share of the Group for the financial year ending 31 May 2011 and 2012.