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.
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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.
