Keppel Land Vietnam and Keppel Vietnam Fund, have acquired three residential plots in Hanoi for $159.7 million as part of a joint venture with regular local partner Phu Long Real Estates.
This also marks the first acquisition of KVF since the fund achieved its first close of US$400 million.
The three sites acquired cover a total area of 14.2 hectares. A total of 1020 condo units and 240 landed homes are planned.
The total development cost, including land, is estimated at over $680 million. The necessary development approvals and other paperwork have been obtained.
“We believe that there is strong demand for thoughtfully designed and high-quality homes amongst discerning homebuyers in Hanoi,” says Joseph Low, Keppel Land’s president (Vietnam).
“In line with Keppel’s asset-light business model under Vision 2030, Keppel Land Vietnam is investing in this project alongside KVF and its co-investor, allowing us to tap third party funds for growth through collaborating with Keppel Capital,” he adds.
Phung Chu Cuong, general director of Phu Long says that his company and Keppel Land have built up a strong partnership, having successfully developed several projects in Ho Chi Minh City.
“We look forward to working with Keppel Land on Mailand Hanoi City, to bring a new lifestyle and a creative, cultural and technological urban area to our customers,” he adds.
Keppel Land does not expect this transaction to have a material impact on parent company Keppel Corp’s earnings and NTA for FY2021 ended Dec 2021 and the current FY2022.
