Keppel Land buys three Vietnam land parcels for $76m

It will develop around 2,400 premium apartments with local developer Phu Long Real Estate Corporation.

Keppel Land, through its wholly-owned subsidiary Monestine, has entered into a conditional share purchase agreement with established Vietnamese developer, Phu Long Real Estate Corporation (Phu Long), to acquire a 60% interest in three land parcels in Ho Chi Minh City, Vietnam for $76m (VND1.3b), an announcement revealed.

Spanning 6.2 ha in the Nha Be district, the three sites are situated within 400 m of each other, along the Nguyen Huu Tho arterial thoroughfare, a 25-minute drive from the Central Business District (CBD).

The acquired sites are also near public amenities, which include reputable healthcare facilities such as FV Hospital and Tam Duc Heart Hospital, as well as educational institutions, such as the Saigon South International School, the Royal Melbourne Institute of Technology (HCMC campus) and Ton Duc Thang University.

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The partners plan to develop a total of about 2,400 premium apartments with ancillary shophouses, which will offer around 14,650 sqm of commercial space, on the sites. The total development cost for the project, inclusive of land cost, is expected to be in excess of $425m (VND7.4b).

The project will be developed in three phases. The development of Phase One, comprising about 910 apartments and some shophouses, will commence in Q1 2020, after the relevant approvals have been obtained.

According to Linson Lim, president of Keppel Land Vietnam, the acquisition will add to Keppel Land's pipeline of about 20,000 homes and quality commercial portfolio in the country.