In Vietnam, Keppel Land is one of the largest and pioneer foreign real estate developers with a diverse portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau. Its properties include Grade A offices, residential properties, integrated townships and award-winning serviced apartments.
With 20 licensed projects across Vietnam and a pipeline of more than 25,000 homes, Keppel Land is establishing itself as the choice developer in the country, distinguished by quality and innovative lifestyle concepts.
The increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in Vietnam with its quality portfolio of properties.
In the same month, the Company also signed a Memorandum of Understanding (MOU) with Vietnam’s State Capital Investment Corporation (SCIC) to collaborate on investment opportunities in the country.
INCREASED STAKE IN SAIGON CENTRE
Keppel Land announced on 19 March 2017 that through its subsidiary, Krystal Investments Pte Ltd, it had acquired from its Vietnamese partner, Southern Waterborne Transport Corporation, an additional 16% stake in Keppel Land WATCO I to V, the joint venture entities for Saigon Centre. The consideration for the purchase is VND 845.9 billion (approximately S$53.5 million).
Following the acquisition, Keppel Land has increased its aggregate interest in the joint venture 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 joint venture companies for subsequent phases of Saigon Centre (Keppel Land WATCO IV and V) from 68% to 76.2%.
Mr Ang Wee Gee, CEO of Keppel Land, said, “Keppel Land is committed to grow its commercial portfolio in key Asian cities. Vietnam continues to attract foreign direct investments 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 in and long-term commitment to sustainable urbanisation in Vietnam through our quality portfolio of properties.“
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 of two planned underground subway stations located at the Ben Thanh Market and the Opera House.
Phase One of Saigon Centre, which was completed in 1996, comprises a 25-storey mixed-use development including a three-storey retail podium, Grade A office space and 89 luxury serviced apartments. The office tower is fully leased to the diplomatic corps, multinational companies, as well as banking and financial institutions. Tenants include DBS Bank, AIG, Reuters and Mitsubishi Corporation.
Phase Two of Saigon Centre 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 in end-2017. The retail mall was opened last August with Takashimaya department store as its anchor tenant. The retail mall has received close to six million visitors since its opening.
Keppel Land signed a MOU with SCIC on 23 March 2017 in Hanoi. The MOU will see the two companies collaborate on investment opportunities in Vietnam.
The MOU was signed between Mr Ang and Mr Nguyen Duc Chi, Chairman of SCIC. Witnessing the signing were the Prime Minister of Singapore, Mr Lee Hsien Loong, and the Prime Minister of Vietnam, Mr Nguyen Xuan Phuc.
Mr Ang said, “Vietnam is one of Keppel Land’s key growth markets where we are committed to deepen our presence. We are constantly on the lookout for strategic alliances with like-minded partners to grow our business.
“This win-win partnership will see Keppel Land and SCIC collaborate on projects in Vietnam, and put Keppel Land in good stead as we look towards scaling up our presence in the country.“