Keppel Land raises stake in Vietnam property

It now own 98% of The Estella.

Keppel Land Limited has entered into a conditional share purchase agreement with its Vietnamese partner, Tien Phuoc Co., Ltd for the acquisition of an additional 43% effective stake in The Estella phases 2 and 3 held by Tien Phuoc in the Estella Joint Venture Company Limited.

Keppel Land currently holds a 55% stake in Estella Joint Venture. Upon completion of the transaction scheduled in end-2014, Keppel Land will hold a total of 98% interest in phases 2 and 3 of the development.

According to Mr Linson Lim, Keppel Land’s President for Vietnam, "Keppel Land has been growing with Vietnam since the 1990s and is one of the pioneer real estate developers in the country. The acquisition of the phases 2 and 3 in The Estella reflects Keppel Land's long-term commitment to contribute to sustainable urbanisation of Vietnam with our quality portfolio of properties."

Here’s more from Keppel Land:

The Estella is a residential development comprising more than 1,500 apartments with a retail component located in the popular An Phu Ward, District 2, Ho Chi Minh City (HCMC), Vietnam. Phase 1 of The Estella has been completed.

It comprises 719 units which have been fully sold and handed over to homebuyers, except for the final batch of nine penthouse units which was recently released for sale.

The Estella is a 15-minute drive to HCMC's central business district via the East-West Highway and Thu Thiem Tunnel.

Families with school-going children will appreciate the site's close proximity to reputable international schools such as the British International School, International School of HCMC-American Academy, European International School and Australian International School.

The Estella is also located close to the future metro station which will open in 2018 and which will connect residents seamlessly from the central business district to District 9 of the city.

The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.