KepLand Plans To Launch Vietnam Condo In Q4

Source : The Business Times, August 22, 2007

Ho Chi Minh City joint project with 1,500 units could fetch $185-215 psf

Green light: (from left) Mr Wong, Mr Vo Sy Nhan, deputy director general of Tien Phuoc; Mr Lim Thuan Kuan, S'pore Ambassador to Vietnam and Dr Phan Huu Thang, director, Foreign Investment Agency, Ministry of Investment and Planning, Vietnam

KEPPEL Land will launch its high-end condominium The Estella in Ho Chi Minh City, Vietnam. The project will have about 1,500 units with a potential gross floor area of 280,000 sq m. The sales launch of the first phase is planned for the final quarter of this year.

Based on current prices, the units could sell for US$1,300-1,500 psm (S$185-215 per square foot).

The announcement was made yesterday after Keppel Land was awarded the investment licence by Vietnam's Ministry of Planning and Investments to proceed with the development of The Estella.

The licence was presented in Ho Chi Minh City in a ceremony just before a Vietnam-Singapore Friendship Concert sponsored by the Keppel Group.

At the ceremony, Kevin Wong, managing director of Keppel Land, said: 'With a pipeline of more than 20,000 homes in the country, we are on track to develop and deliver benchmark quality homes to fulfil rising home ownership aspirations resulting from Vietnam's rapid growth.'

The total investment capital for The Estella is estimated at US$106 million. A Keppel Land subsidiary will take up a 55 per cent stake amounting to US$17.6 million of the total registered capital of US$32 million in the joint venture company while Vietnamese property developer Tien Phuoc will subscribe for the remaining interest.

The Estella is situated along the Hanoi Highway and is 6.5 km away from the Central Business District and a 15-minute drive to the city centre.

Recently Keppel Land announced other residential and township developments in Ho Chi Minh City, Hanoi and Dong Nai Province. These include two waterfront residential developments fronting the Saigon River on a 1.7 ha Binh Thanh District site and a 8.5 ha Ca Cam River site in Ho Chi Minh City.

Keppel Land will also develop a waterfront residential township on a 509 ha site in Dong Nai District.

Two Memorandums of Understanding have also been signed with local joint venture partners to develop residential townships in Hanoi.