Keppel Land – one of the leading Singaporean real estate developers, through its subsidiary, Krystal Investments Pte Ltd., has acquired an additional 16 per cent stake in Saigon Centre from its Vietnamese partner at VND845 billion ($21.6 million).
Keppel Land said on March 20 that it had acquired the stake in a group of Keppel Land WATCO I to V, the joint venture (JV) entities set up to develop Saigon Centre in Ho Chi Minh City, from partner Southern Waterborne Transport Corporation.
Following the acquisition, Keppel Land has increased its aggregate interest in the JV companies set up to develop Saigon Centre phases one and two (Keppel Land WATCO I, II and III) from approximately 45.3 to 53.5 per cent, and its aggregate interest in the JV companies set up to develop subsequent phases of Saigon Centre (Keppel Land WATCO IV and V) from 68 to 76.2 per cent.
According to Ang Wee Gee, CEO of Keppel Land, the company is committed to growing its commercial portfolio in key Asian cities.
“Vietnam, one of our key growth markets, continues to attract foreign direct investment, which will drive positive demand in the property market from homes to offices and mixed-use developments. Our increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in Vietnam with our quality portfolio of properties,” Gee said.
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 from two planned underground subway stations located at Ben Thanh Market and the Opera House.
The Saigon Centre retail mall, part of phase two, was opened on August 1, 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 architecture firm NBBJ, will comprise 55,000 sm of prime retail space, 44,000 sm of premium grade A office space as well as 195 luxury serviced apartments when fully completed at the end of 2017.
Phase one of Saigon Centre, which was completed in 1996, comprises a 25-storey office tower which at the moment is all leased to the diplomatic corps, multinational companies, as well as banking and financial institutions. Tenants include DBS Bank, AIG, Reuters and Mitsubishi Corporation.
The above mentioned transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year, Keppel Land said.
In Vietnam, Keppel Land is one of the largest and pioneer foreign real estate investors with a diverse portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau including Grade A offices, residential properties, integrated townships and award-winning serviced apartments.
With 19 licensed projects across Vietnam and a pipeline of more than 25,000 homes, Keppel Land is establishing itself as the choice developer, distinguished by quality and innovative lifestyle concepts.
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By Bich Ngoc